Nano Labs Ltd (NA) Q4 2024 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call highlights a significant decline in net revenue and cash reserves, along with ongoing financial losses. Despite some improvement in gross profit, the lack of a shareholder return plan and unclear guidance in the Q&A section contribute to a negative outlook. The focus on Bitcoin and Web3.0 indicates strategic shifts, but without immediate financial benefits, the sentiment remains negative.
Key Financial Performance
Net Revenue RMB15.86 million ($2.21 million), down from RMB26.07 million in the same period last year; decline due to decrease in sales volume of iPollo V Series product.
Gross Profit RMB11.57 million ($1.61 million), compared to a gross loss of RMB40.55 million in the same period of 2023; significant improvement due to reduced cost of revenue.
Cost of Revenue RMB4.28 million ($0.6 million), down from RMB66.62 million in the same period of 2023; decline mainly due to decrease in sales volume and last inventory write down.
Total Operating Expenses RMB51.39 million ($7.15 million), down 38.7% from RMB83.84 million in the same period of 2023; decrease attributed to lower overall expenses.
Selling and Marketing Expenses RMB4.8 million ($0.67 million), down 17.7% from RMB5.83 million in the same period of 2023; decrease mainly due to reduction in employee salary expenses.
General and Administrative Expenses RMB25.38 million ($3.83 million), up 30.5% from RMB22.38 million in the same period of 2023; increase primarily due to higher depreciation expenses.
Research and Development Expenses RMB28.93 million ($4.06 million), down 61.9% from RMB32.97 million in the same period of 2023; decrease due to lower salary expenses, material fees, and equipment fees.
Loss from Operations RMB39.82 million ($5.54 million), improved from a loss of RMB124.4 million in the same period of 2023.
Net Loss RMB60.39 million ($8.4 million), improved from a net loss of RMB120 million in the same period of 2023.
Basic and Diluted Loss per Share RMB6.01 ($0.84), improved from RMB19.12 in the same period of 2023.
Cash and Cash Equivalents RMB32.43 million ($4.51 million), down from RMB48.16 million as of December 31, 2023.
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Operating Highlights
New Product Launch: In December 2024, we launched an upgraded complete machine equipped with a Cuckoo 3.0 iteration chip, which delivers enhanced performance that meets all leading standards.
Market Expansion: We have officially established the Bitcoin value investment as a new business sector and designated Bitcoin as our primary reserve asset. As of the date of this earnings conference call, the company holds about 400 BTC with a total purchase price of around $40 million.
Market Positioning: With the rapid evolution of AI, we plan to develop AI applications with the Web3.0 ecosystem, focusing on integration of AI and the Web3.0 technologies.
Operational Efficiency: Total operating expenses for the second half of fiscal year 2024 decreased by 38.7% to RMB51.39 million, $7.15 million, down from RMB83.84 million in the same period of 2023.
Strategic Shift: We remain committed to deepening our expertise in the Web3.0 space, believing these efforts will create substantial value and drive strong results for our stakeholders.
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Risk or Challenges
Competitive Pressures: The company faces competitive pressures in the digital currency and cryptocurrency market, particularly with the launch of upgraded products and the need to maintain market share.
Sales Volume Decline: There was a significant decline in sales volume of the iPollo V Series product, which contributed to a decrease in net revenue.
Regulatory Issues: The company operates in a highly regulated environment, particularly concerning cryptocurrency transactions, which may pose risks to its business activities.
Economic Factors: The overall economic conditions and market volatility in the cryptocurrency sector can impact the company's financial performance and investment strategies.
Supply Chain Challenges: The company may face supply chain challenges that could affect the production and delivery of its products, particularly in the context of technological upgrades.
Financial Losses: The company reported a net loss of $8.4 million for the second half of 2024, indicating ongoing financial challenges.
Cash Reserves: As of December 31, 2024, the company had cash and cash equivalents of $4.51 million, down from $6.83 million the previous year, which may limit operational flexibility.
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Guidance & Outlook
Bitcoin Value Investment: Nano Labs has officially established Bitcoin as a new business sector and designated it as the primary reserve asset, holding about 400 BTC with a total purchase price of around $40 million.
Cuckoo 3.0 Iteration Chip: Launched an upgraded complete machine equipped with a Cuckoo 3.0 iteration chip, enhancing performance and providing competitive advantages.
AI and Web3.0 Integration: Plans to develop AI applications within the Web3.0 ecosystem, focusing on the integration of AI and Web3.0 technologies.
Revenue Expectations: Net revenue for the second half of 2024 was $2.21 million, a decline from $3.73 million in the same period last year.
Gross Profit: Gross profit for the second half of 2024 was $1.61 million, compared to a gross loss of $5.67 million in the same period of 2023.
Operating Loss: Loss from operations was $5.54 million for the second half of 2024, an improvement from a loss of $17.55 million in the same period of 2023.
Net Loss: Net loss for the second half of 2024 was $8.4 million, compared to a net loss of $17.04 million in the same period of 2023.
Cash Position: As of December 31, 2024, cash and cash equivalents were $4.51 million, down from $6.83 million as of December 31, 2023.
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Shareholder Return Plan
Shareholder Return Plan: The company has not announced any share buyback program or dividend program during the earnings call.
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Key Q&A
Q:Why is the company considering increasing its holdings of Bitcoin?
A:We believe Bitcoin is a strategic asset with long term value for reserves and plays a crucial role in the Web3.0 ecosystem. Additionally, its limited supply makes it a potential hedge against inflation with significant room for appreciation over time. More importantly, Bitcoin can serve as foundational infrastructure, creating opportunities for Web3.0 development. Furthermore, many countries have officially recognized Bitcoin as a national strategic reserve asset. We're imposing our confidence in its long term value and potential.
Q:What considerations have driven the company's recent financing activities?
A:Our recent financing activities were driven by business adjustments and expansion initiatives, particularly over increased investment in Bitcoin as a strategic asset. During discussions with strategic investors, we found strong alignment between their industry outlook and our long term vision. Recognizing this synergy, we see the opportunity to introduce these investors at the right time and successfully secure financing.
Q:What is the company's plan for future development?
A:Historically, our business has primarily focused on chip technology expanding into metaverse computing and ecological applications. Looking ahead, we see massive opportunities within the broader metaverse ecosystem and will continue exploring emerging market opportunities. We will start from the design of cryptocurrency IC chips and we will be committed to the development of AI plus Web3.0 in the future.
Q:The company's income is not significant at present. Do you have any expectation for the future?
A:Our Cuckoo 3.0 equipped machines are being steadily shipped and their impact will be reflected to some extent in this year's business performance. Our current focus is on optimizing product management and operations, while staying prepared to seize emerging market opportunities as they arise.
Q:Review of Unclear Management Responses
A:Management's response to the question about future income expectations lacked specific projections or detailed insights into how they plan to improve income.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI Web
AI application
BTC purchase
CEO Conference
Cuckoo iteration
ET Ladies
Tuesday th
Web ecosystem
Web technology
adoption value
advantage market
application Web
asset date
chip standard
conference BTC
cryptocurrency adoption
currency transaction
date conference
demand currency
ecosystem integration
effort value
evolution AI
excursion expertise
expertise space
future opportunity
improvement advantage
integration AI
investment sector
iteration chip
market share
mode conference
opportunity demand
participant
NA Transcript
Nano Labs Ltd (NA) Q4 2024 Earnings Call Transcript
Unknown3-25
The earnings call presents a mixed picture with some improvements in financial metrics but significant challenges remain. Revenue has declined, and the company is facing competitive pressures and regulatory risks. The absence of a shareholder return plan and declining cash reserves are concerning. Although there are improvements in net loss and operating expenses, the weak revenue and lack of clear guidance on future income expectations suggest a negative sentiment. The Q&A section did not provide sufficient clarity on future growth, and the focus on Bitcoin investments introduces additional risk. Overall, the sentiment is negative.
Nano Labs Ltd (NA) Q4 2024 Earnings Call Transcript
Unknown3-25
The earnings call highlights a significant decline in net revenue and cash reserves, along with ongoing financial losses. Despite some improvement in gross profit, the lack of a shareholder return plan and unclear guidance in the Q&A section contribute to a negative outlook. The focus on Bitcoin and Web3.0 indicates strategic shifts, but without immediate financial benefits, the sentiment remains negative.
Nano Labs Ltd (NA) Q2 2024 Earnings Call Transcript
Neutral9-18
NA Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
