U Power Partners with Chia Tai and ICBC Thai to Advance Use of Intelligent and Battery-Swapping Compatible Agricultural Drones in Thailand

Accelerating the Digitalization and Smart Transformation of Thailand's Farming Sector , /PRNewswire/ -- U Power Limited (Nasdaq: UCAR) (the "Company" or "U Power"), a provider of AI-powered solutions for next-generation energy grids and intelligent transportation systems, building on its proprietary UOTTATM electric vehicle (EV) battery-swapping technology, today announced that it has signed a Memorandum of Understanding ("MOU") with Chia Tai Co., Ltd. ("Chia Tai"), Thailand's leading innovative agricultural company and the founding seed business of the Charoen Pokphand Group (CP Group), and ICBC (Thai) Leasing Co., Ltd. ("ICBC Thai"), a majority-owned subsidiary of Industrial and Commercial Bank of China Limited, specializing in vehicle and equipment financing. Together, the three parties will co-develop and promote a drone platform to support the adoption of agricultural drones in Thailand, advancing sustainable farming practices through smart, efficient, and tech-driven solutions. The goal of the partnership between U Power, Chia Tai, and ICBC Thai, is to accelerate the transformation of Thailand's farming sector by introducing battery-swapping-compatible drones into mainstream farming operations. These advanced drones will support a wide range of functions such as crop spraying, seeding/spreading, field assessment, and aerial monitoring and mapping, aimed at improving operational efficiency, reducing costs, and enabling more precise, data-driven farming practices. Through this collaboration, the partners seek to equip farmers with next-generation tools that can drive smarter, more sustainable agricultural production across the country. Pursuant to the MOU, U Power will provide customized swapping and charging-enabled battery modules for dedicated agricultural drones. The Company will also take the lead in providing technical support, managing platform operations, and ensuring the security and regulatory compliance of operational data. In addition, U Power will oversee the payment platform, facilitating transparent and compliant order processing, profit distribution, as well as payment security. Leveraging insights from operational data, U Power also plans to continuously upgrade and scale the platform, enhancing performance and adaptability over time. Chia Tai will supply the agricultural drones and provide drone-related maintenance services for deployment in various application scenarios such as farmlands and orchards in across Thailand. Chia Tai will also lead the promotion and customer acquisition efforts, supporting the commercial implementation and local operation of the drone platform. Meanwhile, ICBC Thai will offer tailored financial leasing solutions for platform users, including dealers, farm owners, agricultural service providers, and agricultural cooperatives, to enable financial compliance and support the long-term sustainability of the platform's operations. Following the signing of the MOU, Chia Tai and U Power will also commence discussions to establish joint ventures aimed at supporting the development and expansion of the agricultural drone platform. As part of the initial phase, Chia Tai will launch pilot programs where U Power will provide test battery modules in select farms in Thailand for operational validation. Concurrently, ICBC Thai will begin designing customized financing solutions for business customers, laying the groundwork for scalable and financially accessible platform adoption. Johnny Lee, CEO and Chairman of U Power commented, "We see strong potential to contribute to Thailand's transition toward digitalized and intelligent agriculture, especially as the country reinforces its position as the 'Kitchen of the World,' supported by government initiatives such as the AGROWTH platform which encourages investments in and use of AI, robotics, and drones. Our goal is to scale the drone application platform nationwide, supporting an industry that contributes to 8-10% of national GDP. As per Data Breach Market Research, in 2024, the Thailand agriculture robot market, which includes drones, soil sensors, harvest robots, etc., was valued at approximately $207.35 million, is projected to reach $1.3 billion by 2032, growing at a CAGR of ~30.4%. Furthermore, with the APAC agriculture drone market projected to reach nearly $49 billion by 2034, this presents significant opportunities for the company to expand beyond Thailand's domestic drone market. We are excited to expand our scope of offerings beyond EVs to include agriculture-specialized drones in collaboration with Thailand's leading agribusiness company and a trusted financial solutions provider. At the same time, we are further strengthening our market existence in Thailand, by collaborating with energy providers, taxi operators, and transportation solution providers, all of which are integral to our vision of building a comprehensive energy replenishment ecosystem." About Chia Tai Company Limited Established since 1921 on Songsawat Road in Yaowarat area, Chia Tai is now one of the leading integrated agribusiness companies providing upstream, midstream and downstream products and services. Chia Tai's offerings range from quality seeds, fertilizers, plant protection products, agricultural equipment and technologies, as well as efficient delivery of fresh, safe, and high-quality produce, in accordance with the company's vision to be the undisputed agribusiness leader that leverages innovative agriculture to offer food sustainability for the quality of life of people in all sectors within 2025. About ICBC (Thai) Leasing Co., Ltd. ICBC (Thai) Leasing Co., Ltd. is a company that specializes in providing both hire purchase and leasing services for personal cars, commercial cars, vehicles for large transportation, as well as commercial machinery and equipment. The company is a subsidiary of ICBC (Thai) Bank PLC, which is majority-owned by Industrial and Commercial Bank of China Limited (ICBC), a commercial bank with the largest market capitalization in the world (based on total market value of common stock, deposit base, net profit). About U Power Limited U Power is a provider of comprehensive AI-integrated energy solutions that connect electric vehicles (EVs) with advanced energy infrastructure, optimizing both mobility and grid performance. Originally a distributor of various battery-swapping station models built on its proprietary modular battery-swapping technology UOTTA™, U Power has evolved into a provider of AI-integrated solutions for energy grids and transportation systems. Through investments in next-generation technologies, U Power is building intelligent ecosystems that integrate resilient AI driven solutions able to transform EVs into dynamic energy assets. By incorporating AI algorithms, U Power's comprehensive solutions for smart energy grids are designed to support autonomous EV driving, optimize energy replenishment efficiency, and seamlessly connect EV assets with advanced AI-powered transportation systems, enabling peak and off-peak energy load balancing. For more information, please visit the Company's website: https://www.upower-limited.com/. Safe Harbor Statements This press release contains "forward-looking statements". Forward-looking statements reflect our current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "could," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "propose," "potential," "continue" or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results, and encourages investors to review other factors that may affect its future results in the Company's registration statements and other filings with the U.S. Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. References and links (including QR codes) to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Contact U Power LimitedInvestor Relations Department[email protected] The Equity GroupLena Cati, Senior Vice President212-836-9611 / [email protected] Alice Zhang, Associate212-836-9610 / [email protected] SOURCE U Power Limited WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

U Power Partners with Chia Tai and ICBC Thai to Advance Use of Intelligent and Battery-Swapping Compatible Agricultural Drones in Thailand

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