Huachen AI Parking Management Technology Holding Co., Ltd. Expands Smart City Ecosystem with Launch of 4G Smart Energy Management and Green Power Arbitrage Initiative

Initiative modernizes grid management, enhances credit risk management, and introduces new revenue streams through green energy arbitrage

Jiaxing, China, Feb. 02, 2026 (GLOBE NEWSWIRE) -- Huachen AI Parking Management Technology Holding Co., Ltd. (NASDAQ:HCAI, "Huachen" or the "Company")), a China-based smart-parking and equipment-structural-parts provider in China, today announced the strategic expansion of its Smart City ecosystem with the launch of its 4G Smart Energy Management and Green Power Arbitrage Initiative. The integrated solution upgraded traditional manual electricity meters with Advanced Metering Infrastructure (AMI) powered by 4G remote-reading technology, designed to enhance operational efficiency in property management while advancing sustainable energy adoption.

Modernizing Grid Management and Enhancing Credit Risk Management

Property managers in high-density urban environments have long faced challenges related to electricity revenue collection. Regulatory constraints often limit the ability to suspend utility services in cases of non-payment, leading to rising accounts receivable and credit risk.

Huachen's solution introduces a digital pre-payment utility model, designed to ensure that electricity consumption is fully funded in advance by tenants. This model is intended to significantly reduce bad-debt exposure, improve working capital efficiency, and enhance overall cash flow visibility for property operators.

Target Markets

The Smart Meter Project is designed for high-density, high-consumption environments, including:

Commercial and residential mixed-use complexes

Large-scale shopping malls

Multi-Tiered Revenue Generation Model

The initiative is supported by a diversified revenue framework with strong margin potential:

Enhanced Liquidity: A pre-payment structure is designed to support more immediate cash inflows and materially reduces capital pressure on property operations.

Service Fee Revenue: In compliance with applicable energy regulations, the Company is permitted to charge a service fee of up to approximately 10% of total electricity charges, generating stable and recurring income.

Green Energy Arbitrage: By leveraging bulk procurement, the Company may capture pricing spreads between wholesale renewable power and retail commercial electricity rates.

Under the arbitrage model, renewable electricity is procured from State Grid sales companies at bulk rates (estimated at approximately RMB 0.6/kWh) and sold to end users at prevailing commercial rates (estimated at approximately RMB 0.8/kWh), which may generate incremental margins while supporting decarbonization objectives.

Management Commentary

"The integration of 4G smart metering represents a natural evolution of our smart city strategy," said the Company. "By transitioning from manual, reactive billing to a digital pre-payment model, we aim to enhance flow challenge faced by property owners while improving operational efficiency. At the same time, our green power arbitrage initiatives are intended to align economic performance with environmental sustainability, supporting our broader strategy of long-term value creation for shareholders and partners."

About Huachen AI Parking Management Technology Holding Co., Ltd.

Huachen AI Parking Management Technology Holding Co., Ltd. is a China-based, one-stop provider of smart-parking systems and precision structural parts. Through our operating subsidiaries we design, manufacture, install and service space-saving cubic parking garages—tailored to each client's needs with technologies such as vertical lifting and multi-layer cycling—while also supplying custom steel components and railroad accessories to industrial customers nationwide.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate," "continue" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and other factors discussed in the "Risk Factors" section of the Registration Statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For further information about Huachen, please contact:

Huachen AI Parking Management Technology Holding Co., Ltd

Alan Li [email protected]

Mobile: +852-95791074