Jiangsu Guofu Hydrogen Energy Announces Strategic Investment in U Power Limited

Jiangsu Guofu Hydrogen Energy Equipment Co., Ltd. (“the Company”, Stock Code: 02582) has announced a significant discloseable transaction which is likely to capture the attention of investors and shareholders. On April 27, 2026, after trading hours, the Company’s indirect subsidiary, Guofu Hydrogen Energy (Hong Kong) Development Co., Limited (“Guofu Hydrogen Energy HK”), entered into a Subscription Agreement to acquire a sizeable stake in U Power Limited (“the Target Company”), an AI-powered energy and smart transportation solutions provider listed on the Nasdaq Capital Market under the ticker symbol “UCAR”.

Key Transaction Details

• Subscription Amount: Guofu Hydrogen Energy HK will subscribe for approximately 2,195,122 class A ordinary shares of U Power Limited at a price of US\$1.64 per share, totaling approximately US\$3.6 million.
• Stake Acquired: Upon completion, Guofu Hydrogen Energy HK will hold around 8.70% of the class A ordinary shares in issue, or approximately 8.50% of the total enlarged share capital of U Power Limited.
• Lock-up Period: Half of the acquired shares are subject to a six-month lock-up. During this period, these shares cannot be offered, sold, pledged, or otherwise transferred in the United States, or to a U.S. Person, unless registered or compliant with applicable regulations. The remaining half is not subject to this restriction.
• Funding: The transaction will be funded using the Company’s internal resources.

Background on the Parties

Guofu Hydrogen Energy HK

• Incorporated in Hong Kong in August 2024, it is principally involved in hydrogen energy development, technology consulting, and international trade.
• Wholly owned by Zhangjiagang Research Institute of Hydrogen Energy Co., Ltd., which is in turn 90.46% owned by Jiangsu Guofu Hydrogen Energy Equipment Co., Ltd. and 9.54% by Jiangsu South-East University Assets Management Co., Ltd.

U Power Limited

• An exempted Cayman Islands company, listed on Nasdaq (Symbol: UCAR).
• Specializes in AI-powered solutions for next-generation energy grids and intelligent transportation, notably electric vehicle (EV) battery-swapping technology.
• As of June 30, 2025, reported total assets of RMB385.7 million.
• However, the company reported significant net losses of RMB25.5 million in 2023 and RMB56.4 million in 2024.

Strategic Rationale and Potential Impact

The Company’s Board believes this strategic investment will establish a deep and comprehensive partnership with U Power Limited, unlocking several key benefits:

• Market Expansion: Leverage U Power’s local networks and shareholder resources (including those of the Charoen Pokphand Group’s family fund) in Thailand and Southeast Asia, to accelerate the deployment of the Company’s AI data center power supply products and overall solutions in the region.
• Hydrogen Refueling and Mobility: Advance the Group’s hydrogen refueling station network in Southeast Asia, promote hydrogen-powered commercial vehicles, and speed up the application of innovations such as hydrogen-powered agricultural drones.
• Long-term Value: The Directors view the subscription as a long-term investment with the potential for positive returns, despite U Power’s current losses.
• Joint Venture Plans: The move is seen as a strategic step toward establishing a joint venture to develop data center power supply business, agricultural drones, and hydrogen-powered heavy-duty trucks in Southeast Asia.

Listing Rules and Shareholder Implications

• Disclosure Requirement: As the highest applicable percentage ratio for the Subscription exceeds 5% but is less than 25%, the transaction is classified as a discloseable transaction under Chapter 14 of the Hong Kong Listing Rules, requiring notification and public announcement.
• Conditions Precedent: Completion of the transaction is subject to the fulfillment of various closing conditions as set out in the Subscription Agreement.
• Shareholder Impact: This transaction marks a notable strategic expansion into Southeast Asia, which could influence the Company’s valuation and share price, especially if the partnership accelerates business growth and captures new markets.

Cautions and Next Steps

Shareholders and potential investors are advised to exercise caution when dealing in the Company’s H shares. As the deal is subject to closing conditions, there is no certainty that it will be completed as proposed. If in doubt, consult professional advisers.

Conclusion

This strategic investment positions Jiangsu Guofu Hydrogen Energy for accelerated growth and innovation in Southeast Asia’s hydrogen and AI-driven energy infrastructure markets. While U Power Limited is loss-making at present, the partnership’s synergies and the region’s growth prospects could be significant catalysts for the Company’s future performance and share value.

Disclaimer: The above article is provided for informational purposes only and does not constitute investment advice. Investors should exercise caution and consult professional advisers before making investment decisions.

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