BANGKOK, April 27, 2026 /-- U Power Limited (Nasdaq: UCAR) ("U Power" or the "Company"), a provider of AI-integrated solutions for next-generation energy grids and intelligent transportation systems, today announced the signing of an agreement with Guofu Hydrogen Energy (Hong Kong) Development Co., Limited (HKSE: 2582)("Guofuhee") and Cloud Digital Chain Limited ("Cloud Digital"), (collectively the "Parties"), 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."

JV Partners and Business Scope

Guofuhee is a leading integrated solutions provider for the full hydrogen energy equipment value chain in China. Guofuhee has established a strong position across the hydrogen infrastructure sector, with core expertise spanning the design, manufacturing, and technical services of hydrogen-related equipment used in production, storage, transportation, refueling, and end-use applications. Guofuhee has maintained the No. 1 market share in hydrogen refueling station equipment in China for five consecutive years (2019–2023), reflecting its sustained leadership in the country's rapidly expanding hydrogen energy industry.

Cloud Digital is a technology-focused company operating in the emerging digital asset and new technology sectors by delivering innovative digital solutions across cloud computing, data infrastructure, and blockchain-enabled system. It is engaged in business activities related to digital asset development and services, positioning itself within the broader ecosystem of next-generation digital finance and technology-driven solutions.

Leveraging U Power's extensive network of energy service provider partners in Thailand and its track record of successful commercial projects across the region, together with Guofuhee's exceptional expertise and market know-how in hydrogen energy equipment, as well as Cloud Digital's experience in delivering data center power supply solutions, the JV is well positioned to address the rapidly growing demand for IDC development in Thailand. By combining these complementary strengths, the JV aims to deliver reliable, scalable, and sustainable energy solutions tailored to the evolving needs of next-generation data center infrastructure.

Specifically, the JV and its future subsidiaries will focus on the following core business activities:

• Design and delivery of integrated energy solutions for IDCs, including the sale, construction & operation of energy systems of advanced energy systems tailored to high-performance computing environments;
• Development, construction and operation of hydrogen refueling infrastructure to support the growing adoption of hydrogen-powered mobility;
• Assembly and commercialization of hydrogen-powered drones addressing emerging applications in logistics, surveillance, and industrial operations; and,
• Research, development, sales and after-sales services related to hydrogen-powered commercial vehicles, supporting the transition toward clean transportation solutions.

According to Research and Markets, Thailand's IDC market was valued at $1.45 billion in 2025, and is projected to grow to $6.3 billion by 2031, representing a CAGR of 27.7%. In 2025, the Thailand Board of Investment received applications for 36 data center projects, with a combined investment value exceeding $23.1 billion, reflecting strong long-term infrastructure demand expectations.