Release Date: March 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nano Labs Ltd (NA, Financial) has officially established Bitcoin as a new business sector and designated it as their primary reserve asset, holding about 400 BTC valued at approximately $40 million.
- The company launched an upgraded complete machine equipped with the Cuckoo 3.0 innovation chip, which enhances performance and meets leading standards, providing competitive advantages.
- Nano Labs Ltd (NA) is focusing on the integration of AI and Web3.0 technologies, aiming to develop AI applications within the Web3.0 ecosystem.
- The company recorded a gross profit of RMB11.57 million (USD1.61 million) for the second half of 2024, a significant improvement from a gross loss in the same period of 2023.
- Total operating expenses decreased by 38.7% to RMB51.39 million (USD7.15 million) compared to the same period in 2023, indicating improved cost management.
Negative Points
- Net revenue for the second half of 2024 was RMB15.86 million (USD2.21 million), a decline from RMB26.07 million in the same period last year, primarily due to decreased sales volume of the iPollo V Series product.
- The company reported a net loss of RMB60.39 million (USD8.4 million) for the second half of 2024, although this was an improvement from the previous year's loss.
- Cash and cash equivalents decreased to RMB32.43 million (USD4.51 million) as of December 31, 2024, compared to RMB48.16 million at the end of 2023.
- General and administrative expenses increased by 13.5% to RMB25.38 million (USD3.5 million) for the second half of 2024, primarily due to increased depreciation expenses.
- Despite improvements, the company's income remains not significant, with ongoing challenges in optimizing product management and operations.
Q & A Highlights
Q: Why is the company considering increasing its holdings of Bitcoin?
A: Jianping Kong, Chairman and CEO, explained that Bitcoin is viewed as a strategic asset with long-term value, crucial for the Web3.0 ecosystem. Its limited supply offers potential protection against inflation and significant appreciation potential. Bitcoin is also seen as foundational infrastructure for Web3.0 development, with many countries recognizing it as a strategic reserve asset, reinforcing its long-term value.
Q: What considerations have driven the company's recent financing activities?
A: Jianping Kong, Chairman and CEO, stated that the recent financing activities were driven by business adjustments and expansion initiatives, particularly the increased investment in Bitcoin. Discussions with strategic investors revealed strong alignment with the company's long-term vision, leading to successful financing.
Q: What is the company's plan for future development?
A: Jianping Kong, Chairman and CEO, mentioned that the company plans to focus on chip technology, expanding into metaverse computing and ecological applications. They see opportunities in the broader metaverse ecosystem and will explore emerging market opportunities, starting with cryptocurrency IC design and developing AI plus Web3.0.
Q: The company's income is not significant at present. Do you have any expectations for the future?
A: Bing Chen, CFO, noted that the impact of Cuckoo 3.0 equipped machines will be reflected in this year's performance. The focus is on optimizing product management and operations while being prepared to seize emerging market opportunities.
Q: What are the financial highlights for the second half of 2024?
A: Bing Chen, CFO, reported net revenue of RMB15.86 million, a decline from the previous year due to decreased sales volume. However, a gross profit of RMB11.57 million was recorded, compared to a gross loss in 2023. Operating expenses decreased by 38.7%, and the net loss was reduced to RMB60.39 million from RMB120 million in 2023.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
