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    Nianyi Zou • UBS

    Nianyi Zou's questions to NaaS Technology Inc (NAAS) leadership

    Nianyi Zou's questions to NaaS Technology Inc (NAAS) leadership • Q3 2024

    Question

    Nianyi Zou from UBS questioned the long-term sustainability of NaaS's first-time non-IFRS net profit and asked about trends in user subsidies and their effect on overall profitability.

    Answer

    CFO Steven Sim expressed confidence in sustaining profitability, driven by continued growth in high-margin services, operating leverage from scaling, and AI-driven efficiencies. Regarding subsidies, he noted that as the market stabilized, NaaS began reducing subsidies in early 2024. This shift fostered a more sustainable revenue model, improved take rates to historic highs, and did not impede user growth, which was instead driven by better user experience and organic acquisition channels.

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    Nianyi Zou's questions to NaaS Technology Inc (NAAS) leadership • Q2 2024

    Question

    Nianyi Zou of UBS requested more detail on the operational metrics behind the company's improved financial performance, specifically asking about the gross take rate (GTR) and net take rate (NTR).

    Answer

    Alex Wu, President and CFO, stated that the GTR reached an all-time high due to two main factors: an improved algorithm driving better results for CPOs, which allows for higher commission rates, and the successful onboarding of more 'long-tail' CPOs where NaaS has greater bargaining power. Regarding the NTR, Wu noted that advanced algorithms have improved user acquisition efficiency, evidenced by a nearly 30% quarter-over-quarter increase in net VIP member additions, which helped push the share of profitable orders to 70%.

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    Nianyi Zou's questions to NaaS Technology Inc (NAAS) leadership • Q2 2024

    Question

    Nianyi Zou of UBS requested more detail on the operational metrics behind the company's improved financial performance, specifically asking about the gross take rate (GTR) and net take rate (NTR).

    Answer

    Alex Wu, President and CFO, explained that the GTR reached an all-time high due to two factors: their algorithm improving operational outcomes for CPOs, which allows for better commission rates, and an increase in 'long-tail' CPOs joining the platform, where NaaS has stronger bargaining power. Regarding the NTR, Mr. Wu stated it was driven higher by advanced algorithms improving user acquisition and retention efficiency, evidenced by a nearly 30% quarter-over-quarter increase in net VIP member additions.

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