{"url_path":"/sec/ucar/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 FINANCIAL INFORMATION**","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":378,"has_tables":true,"body_markdown":"**Item\n8. FINANCIAL INFORMATION**\n\n \n\nA.\nConsolidated Statements and Other Financial Information\n\n \n\nWe\nhave appended consolidated financial statements filed as part of this annual report. See “Item 18. Financial Statements.”\n\n \n\n**Legal\nProceedings**\n\n \n\nSee “Item\n4. Information on The Company — B. Business Overview — Legal Proceedings”\n\n \n\n**Dividend\nPolicy**\n\n \n\nOur\nboard of directors has complete discretion as to whether to distribute dividends. In addition, our shareholders may by ordinary resolution\ndeclare a dividend, but no dividend may exceed the amount recommended by our board of directors. In either case, all dividends are subject\nto certain restrictions under Cayman Islands law, namely that we may only pay dividends out of profits or share premium, and provided\nthat in no circumstances may a dividend be paid if it would result in us being unable to pay our debts as they fall due in the ordinary\ncourse of business. Even if our board of directors decides to pay dividends, the form, frequency and amount will depend upon our future\noperations and earnings, capital requirements and surplus, general financial condition, contractual restrictions and other factors that\nour board of directors may deem relevant.\n\n \n\nWe\ndo not have any plan to declare or pay any cash dividends on our Class A Ordinary Shares in the foreseeable future. We intend to retain\nmost, if not all, of our available funds and future earnings to operate and expand our business.\n\n \n\nWe\nare an exempted company with limited liability incorporated in the Cayman Islands. We rely principally on dividends distributed by our\nPRC subsidiaries and payments from PRC subsidiaries for our cash requirements, including distribution of dividends to our shareholders.\nDividends distributed by our PRC subsidiaries are subject to PRC taxes.\n\n \n\nIn\naddition, PRC regulations may restrict the ability of our PRC subsidiaries to pay dividends to us and only allow a PRC company to pay\ndividends out of its accumulated distributable after-tax profits as determined in accordance with its articles of association and the\nPRC accounting standards and regulations. See “Item 3. Key Information *—*D. Risk Factors — Risks Relating\nto Doing Business in China.”\n\n \n\nB.\nSignificant Changes\n\n \n\nExcept\nas disclosed elsewhere in this annual report, we have not experienced any significant changes since the date of our audited consolidated\nfinancial statements included in this annual report."}