{"url_path":"/sec/ucar/10-k/2026/item-15","section_key":"item-15","section_title":"Item 15 CONTROLS AND PROCEDURES**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1939780/0001213900-26-057792-index.html","accession_number":"0001213900-26-057792","cik":"0001939780","ticker":"UCAR","issuer_name":"U Power Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1939780/0001213900-26-057792-index.html","primary_entity_key":"0001939780","primary_entity_name":"U Power Ltd"},"word_count":690,"has_tables":true,"body_markdown":"**Item\n15. CONTROLS AND PROCEDURES** \n\n \n\n**Disclosure\nControls and Procedures**\n\n \n\nUnder\nthe supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we carried\nout an evaluation of the effectiveness of our disclosure controls and procedures, which is defined in Rules 13a-15(e) of the\nExchange Act, as of December 31, 2025.\n\n \n\nBased\non that evaluation, our management has concluded that, due to the material weaknesses and significant deficiencies identified below,\nas of December 31, 2025, our disclosure controls and procedures were not effective in ensuring that the information required to be disclosed\nby us in the reports that we file or submit under the Exchange Act was recorded, processed, summarized and reported, within the time\nperiods specified in the SEC’s rules and forms, and that the information required to be disclosed by us in the reports that we\nfile or submit under the Exchange Act is accumulated and communicated to our management, including our chief executive officer and chief\nfinancial officer, to allow timely decisions regarding required disclosure. The material weaknesses identified included (i) a lack\nof sufficient skilled staff with U.S. GAAP knowledge and the SEC reporting knowledge for the purpose of financial reporting as well\nas a lack of formal accounting policies and procedures manual to ensure proper financial reporting in accordance with U.S. GAAP\nand SEC reporting requirements; (ii) a lack of formal policies and procedures to establish risk assessment process and internal\ncontrol framework.\n\n \n\n**Management’s\nAnnual Report on Internal Control over Financial Reporting**\n\n \n\nOur\nmanagement is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined\nin Rule 13a-15(f) and 15d-15(f) under the Exchange Act. Our management conducted an assessment of the effectiveness of our internal control\nover financial reporting based on the criteria set forth in “Internal Control - Integrated Framework (2013)” issued by the\nCommittee of Sponsoring Organizations of the Treadway Commission.\n\n \n\nIn\nthe course of preparing our consolidated financial statements for the year ended December 31, 2025, our management identified several\ncontrol deficiencies, which include material weaknesses. The material weakness identified relates to our lack of sufficient skilled staff\nwith U.S. GAAP knowledge and the SEC reporting knowledge for the purpose of financial reporting as well as the lack in formal accounting\npolicies and procedures manual to ensure proper financial reporting in accordance with U.S. GAAP and SEC reporting requirements. We have\nalready taken the following steps to implement measures to remediate the material weakness we have identified: (1) streamlining\nour accounting department structure and enhancing our staff’s U.S. GAAP expertise on a continuous basis; and (2) making\nan overall assessment on the current finance and accounting resources and planning to hire new finance team members with pertinent qualifications,\nin order to strengthen our U.S. GAAP reporting framework. We plan to take additional measures to improve the effectiveness of our\ninternal control and financial reporting, including: (1) hiring a new reporting manager who has expertise in U.S. GAAP to improve\nthe quality of U.S. GAAP reports; (2) participating in training and seminars provided by professional service firms on a regular\nbasis to gain knowledge on regular accounting/SEC reporting updates; and (3) providing internal training to our current accounting\nteam on U.S. GAAP practices. We are also in the process of completing a systematic accounting manual for U.S. GAAP and financial\nclosing process.\n\n \n\n122\n\n \n\n**Attestation\nReport of the Registered Public Accounting Firm**\n\n \n\nThis\nannual report on Form 20-F does not include an attestation report of our registered public accounting firm regarding internal control\nover financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant\nto rules of the SEC where domestic and foreign registrants that are non-accelerated filers, which we are, and “emerging growth\ncompanies,” which we also are, are not required to provide the auditor attestation report.\n\n \n\n**Changes\nin Internal Control over Financial Reporting**\n\n \n\nThere\nwere no changes in our internal controls over financial reporting that occurred during the period covered by this annual report on Form 20-F\nthat have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting."}