U Power Limited, a provider of AI-integrated solutions for next-generation energy grids and intelligent transportation systems, has announced the signing of an agreement with Guofu Hydrogen Energy (Hong Kong) Development Co., Limited and Cloud Digital Chain Limited, to establish a strategic U Power-controlled joint venture (JV) entity aiming at providing comprehensive AI-driven energy management solutions for Intelligent Data Centers (IDCs), initially in the Thailand market, and expected to gradually expand into global markets.

As per the terms of the agreement, U Power will hold a majority equity stake in the JV. The Parties anticipate providing initial capital for the establishment and incorporation of one or more subsidiaries in Hong Kong SAR on or before July 31, 2026. The JV is expected to commence operations within 90 days thereafter.

Through the establishment of this JV, U Power aims to:

• Expand its business scope into hydrogen energy services tailored for IDCs, marking a strategic step beyond its core battery-swapping operations, and create a new and scalable revenue stream that complements its existing battery-swapping business. This diversification not only broadens its commercial footprint but also reduces reliance on a single vertical, while enabling the Company to participate in multiple segments of the clean energy transition across mobility, infrastructure, and digital economy applications.
• Enhance its positioning as a provider of AI-integrated solutions for next-generation energy grids, where intelligent energy management, optimization, and real-time control are increasingly critical. By integrating hydrogen energy capabilities with its existing technology stack, the Company aims to support more resilient and sustainable power systems for energy-intensive applications such as data centers.
• Strengthen market presence in Thailand, a key growth market in Southeast Asia, while positioning it closer to fast-growing demand for reliable, low-carbon, and high-efficiency energy solutions in digital infrastructure.
• Expansion in other markets will proceed gradually, using a replicable operational model.

Johnny Lee, Founder and Chief Executive Officer of U Power Limited, stated, "We are pleased to partner with Guofuhee, a recognized leader in hydrogen energy solutions, and Cloud Digital, an experienced provider of data center energy supply solutions, to establish this JV. By combining the complementary strengths of all three parties, we are well positioned to capture early-stage opportunities arising from Thailand's rapidly expanding IDC market, where demand for reliable, scalable, and sustainable energy infrastructure continues to accelerate."

Mr. Lee continued, "As U Power advances toward its goal of becoming a leading provider in the commercial energy grid sector, we remain focused on building and expanding a diversified portfolio of innovative, clean, and sustainable energy replenishment solutions. Our entry into hydrogen energy services for IDCs represents not only a strategic step to deepen our presence in the key Thailand market, but also a meaningful evolution of our business model. Leveraging our technological capabilities, particularly in AI-driven energy management and integrated energy solutions, we aim to support the development of next-generation energy infrastructure that meets the growing demands of digital economies. We believe this initiative will enable us to play an active role in accelerating the adoption of cleaner energy systems, while contributing to the long-term growth of an emerging industry in Southeast Asia. It also establishes a scalable operating model that can be replicated as we expand into more regional markets such as the Middle East and Europe, and beyond."