The paper presents a novel waterflooding technique, coupling cyclic high-pressure water slug injection with an asynchronous injection and production procedure, to address the inefficient development of low-permeability oil reservoir in Shengli Oilfield, a pilot test with 5-spot well pattern. Based on the first-hand data from the pilot test, the reservoir model is established. With an in-depth understanding of the mechanism of the novel waterflooding technique, different simulation schemes are employed to screen the best scheme to finely investigate the historical performance of the pilot test. The production characteristics of the pilot test are both qualitatively and quantitatively investigated. It is found that the novel waterflooding technique can provide pressure support within a short period. And the formation around the injector is significantly activated and deformed. Once passing the short stage of the small elastic deformation, the reservoir immediately goes through the dilation deformation accompanied with the opening of microfractures so that the reservoir properties are significantly improved, which leads to better reservoir performance. With the multicyclic dilation-recompaction geomechanical model, the impact of pressure cyclic evolution on the reservoir properties and performance under the novel waterflooding mode of cyclic high-pressure water slug injection is taken into consideration. The historical data of the pilot test is well matched. In the study, a high-precision simulation scheme for the novel waterflooding technique in low-permeability reservoirs is proposed, which provides significant technical support for further optimization of the pilot test and large-scale application of the novel waterflooding technique.