Nano Labs - Earnings Call - H1 2025

Transcript

Speaker 3

Ladies and gentlemen, thank you for standing by. Welcome to Nano Labs' first half of 2025 earnings conference call. During today's call, all participants will be in listen-only mode. This conference is being recorded today, Friday, August 15, 2025. Joining us today from Nano Labs are the company's Chairman and Chief Executive Officer, Mr. Jianping Kong, and the company's Chief Financial Officer, Mr. Bing Chen. On our call today, Mr. Kong will give you an overview of the company's performance. Mr. Chen will share the details of the company's financial results. After that, we will conduct a question-and-answer session to take your questions. Before we continue, I would like to remind you that some information discussed on this call will contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and as defined in the U.S.

Private Securities Litigation Reform Act of 1995. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the company's filings with the Securities and Exchange Commission. During today's call, Mr. Kong and Mr. Chen will deliver their remarks in Chinese, and the company's representative will provide corresponding English translations. With that, I will now turn the call over to Mr. Kong, the company's Chairman and Chief Executive Officer. Mr. Kong, please go ahead.

Speaker 4

好的，感谢主持人和今天参加 Nano Labs Ltd 2025 年上半年财报电话会议的朋友。在我们今天的电话会议上，我们将概述公司近期发展以及公司未来的战略举措。

Speaker 0

Thank you, operator, and everyone for joining Nano Labs Ltd's first half of 2025 earnings conference call today. On our call today, I will provide an overview of our recent developments and our strategic initiatives in the future.

Speaker 4

mining machine business, the company is also continuously seeking new market opportunities while stabilizing our current business.

Speaker 0

The year 2025 marks a major transformation for the company, as in light of the evolving industry landscape and the onset of a new market cycle, we focus our resources and efforts on expanding our crypto assets to a strategic reserve as the market continues to embrace cryptocurrency transactions and cryptocurrency reserves. We have taken the decisive first step of concentrating our cryptocurrency reserve in BNB, ensuring a new stage of development. As of the date of this earnings conference call, the company holds over 128,000 BNB. Meanwhile, building on our existing mining machine business, we continue to explore new market opportunities while maintaining stability in our current operations.

Speaker 4

回顾 2025 年上半年，自年初起，我们便开始一系列决定性的战略变革。我们加快了在加密货币领域的扩张与合作，与此同时，我们积极采取进取而又审慎的方式，通过多种途径扩大加密货币投资与储备，包括通过融资资金和自由资金，不断扩大加密货币的战略储备。战略入股 BNB 储备公司，持续务实 BNB 战略储备布局。同期，我们还进军方兴未艾的这个稳定币领域，进行多元化的 Web3 领域的布局。展望未来，我们将继续保持敏锐，积极捕捉 Web3 与 AI 驱动变革时代的新市场机遇与巨大潜能。凭借着长远的战略规划与坚决不懈的执行，我们相信这些举措将为利益相关方创造丰厚的价值，推动公司的长期繁荣。

Speaker 0

Within the first half of 2025, we have undertaken decisive and strategic transformations since the beginning of this year. We accelerated our expansion and collaboration in the cryptocurrency field. Meanwhile, we undertook efficient yet prudent initiatives to expand our currency investments and reserves through various approaches, including the continuous expansion of our strategic cryptocurrency reserve using both financing and proprietary funds, as well as a strategic equity investment in CEA, a BNB reserve company, thereby solidifying our BNB strategic reserve layout. At the same time, we expanded into the emerging stablecoin sectors as part of our diversified Web3 strategy. Looking forward, we remain vigilant for emerging opportunities and the vast potential for innovation in the Web3 space and the AI-driven transformative era.

Through the visionary and insightful strategic planning, along with decisive and consistent execution, we believe these efforts will generate substantial value for our stakeholders and drive long-term prosperity for the company.

Speaker 4

感谢各位一直以来对本公司的信任和支持。接下来，我们将把电话转给我们的首席财务官Bing Chen先生，由他对我们的财务业绩进行更详细的阐述。Bing Chen先生，请您继续。

Speaker 0

Thank you for your support and trust. Next, I will turn the call over to our Chief Financial Officer, Mr. Bing Chen, for a closer review of our financial results. Mr. Chen, please go ahead.

Speaker 1

million或$1.50 million, 去年同期为毛利润¥0.03 million。2025年上半财年, 公司的营收成本为¥18.99 million或$2.65 million, 2024年同期为¥24.71 million, 主要原因是销售量下降、存货季减和可抵扣增值税减值。

Speaker 0

Thank you, Mr. Kong. Good morning everyone. On behalf of the management team, I will provide a brief financial overview of the first half of 2025. In the first half of 2025, our net revenue was RMB 8.28 million, $1.16 million, compared to RMB 24.74 million in the same period last year. The decline was primarily due to the decreased sales volume of the Apollo V series product. We recorded a gross loss of RMB 10.71 million, $1.5 million for the first half of 2025, compared to a gross profit of RMB 30,000 in the same period of 2024. Cost of revenue for the first half of fiscal year 2025 was RMB 18.99 million, $2.65 million, compared to RMB 24.71 million in the same period of 2024. The decline was mainly due to the decrease in sales volume and write-down of inventory and value-added tax recoverable.

Speaker 1

in sales commissions and compensation expenses.

Speaker 0

Total operating expenses for the first half of fiscal year 2025 decreased by 53.5% to RMB 27.33 million, $3.82 million, down from RMB 58.72 million in the same period of 2024. Selling and marketing expenses dropped by 39.6% to RMB 2.62 million, $0.37 million, compared to RMB 4.33 million in the same period of 2024. This decrease was mainly due to the decrease in sales commission and salaries.

Speaker 1

employee compensation expenses.

Speaker 0

General and administrative expenses decreased by 15.4% to RMB 21.54 million, $3.01 million, for the first half of 2025, from RMB 25.45 million for the same period of 2024. The decrease in general and administrative expenses was primarily due to the decrease in professional fees and employee salary expenses.

Speaker 1

activities in 2025.

Speaker 0

Research and development expenses decreased by 89.1% to RMB 3.16 million, $0.44 million, for the first half of 2025, from RMB 28.93 million for the same period of 2024. The decrease in research and development expenses, including salary expenses, design fee, service fee, material cost, etc., was mainly due to the strategic adjustment in research and development activities in 2025.

Speaker 1

2024, this amount was RMB 32.43 million.

Speaker 0

Loss from operations was RMB 38.03 million, $5.31 million for the first half of 2025, compared with loss from operations of RMB 58.69 million for the same period of 2024. Net loss was RMB 11.78 million, $1.65 million for the first half of 2025, compared to a net loss of RMB 59.15 million in the same period of 2024. Basic and diluted loss per share was RMB 0.43, $0.06 for the first half of 2025, compared to basic and diluted loss per share of RMB 8.46 in the same period of 2024. As of June 30, 2025, the company had cash and cash equivalents of RMB 363.44 million, $50.77 million, compared with RMB 32.43 million as of December 31, 2024.

Speaker 1

我们坚信我们未来业务发展的战略和执行能力，我们将继续发挥我们的技术优势，抓住发展机遇，推动公司的长期增长，并为股东创造更多的价值。现在我将电话交给主持人来进行问答环节。

Speaker 0

We remain confident in our business strategies and ability to execute it. We will continue to leverage the strengths of our technology to capture development opportunities, drive long-term growth, and create additional value for our shareholders. Now, I would like to turn the call over to the operator for question and answer session.

Speaker 3

Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Claire Harrison. Please go ahead.

Speaker 0

Thank you, management team. My question is, why has the company chosen BNB as its core reserve asset? Thank you. 公司为什么选择BNB作为核心的储备资产?

Speaker 4

BNB作为最具代表性的加密货币之一，不仅具备高频度的活跃的生态系统，还因其模型与平台价值支撑，展现出优异的成长性和抗风险能力。我们将其作为核心战略目标的币种进行持有。

Speaker 0

BNB is one of the most representative crypto assets. Not only has it a highly active ecosystem, but also demonstrates outstanding long-term growth potential and resilience, supported by its model and platform value. Therefore, we hold BNB as the key cryptocurrency for our core strategic objectives.

Speaker 3

Your next question comes from Armstrong Wu.

Speaker 5

Hello. My question is, if as a director, you're holding BNB, what other measures will the company take to strengthen its strategic reserves? Thank you.

Speaker 0

公司除了持有BNB以外, 其他还通过哪些方式加强战略储备?

Speaker 4

我们会采用多元手段推动BNB战略储备计划，包括控股或者参股BNB战略储备公司，以及投资具备强生态协同能力的企业，通过多元的方式形成更稳定的战略布局。

Speaker 0

We'll adopt diversified approaches to advance our BNB strategic reserve plan, including acquiring controlling or minority stakes in BNB strategic reserve companies, as well as investing in enterprises with strong ecosystem synergies. These diversified measures will help us build a more stable strategic layout. Thanks.

Speaker 3

Your next question comes from Ella Rosenblatt.

Speaker 2

Hi. My question is, will the company consider reserving other cryptocurrencies, or will it focus only on BNB?

Speaker 0

想问一下，公司是否会考虑储备其他的加密货币，还是只是专注于BNB？

Speaker 4

目前公司以BNB为核心储备资产，是基于其在生态的成熟度、资产的稳定性以及成长性等综合方面去考量的，但我们也在持续关注其他具有战略价值和生态支撑的加密货币。未来不排除在合适的时机、明确的场景下配置少量多元资产，以优化资产组合和提升抗周期能力。但到目前为止，公司仍将以BNB为主线，保持战略聚焦和执行力。

Speaker 0

Great point. The company's focus on BNB as its core reserve assets is based on a comprehensive assessment of BNB ecosystem maturity, asset stability, and the long-term growth potential. However, we will continue to monitor other crypto assets with strategic value and ecosystem support. In the future, we do not rule out allocating a small portion of diversified assets at the right time and in well-defined scenarios to optimize our portfolio and enhance resilience against market cycles. Overall, though, our company will remain centered on BNB to maintain strategic focus and expansion strength. Thanks.

Speaker 3

Your next question comes from Irene Urbana.

Speaker 2

Hi. Thank you. Does the company have any financing plans for 2025, and what are the considerations behind such plans?

Speaker 0

公司在2025年有融资计划吗? 融资的考虑是什么?

Speaker 1

公司在2025年已启动并完成了部分战略融资，此次融资的主要目的是为了支持BNB战略储备规模的持续扩张。未来公司也会持续考虑各类融资方案，为支持BNB战略储备计划的持续扩张，进一步为公司更好地开展Web3的相关业务提供保障。

Speaker 0

The company initiatives and partially complete strategic financing in 2025. The primary purpose of this financing is to support the continued expansion of our BNB strategic reserve scale. Going forward, we will continue to consider various financing options to further support the growth of our BNB strategic reserve plan, thereby ensuring better execution of our Web3-related business initiatives. Thank you.

Speaker 3

That concludes the question and answer session. Let me turn the call over to Mr. Chen for closing remarks.

Speaker 1

非常感谢各位参加本次电话会议。如果您有任何问题，请通过电子邮件联系我们，[email protected]。联系我们的IR公司部门或通过邮箱，管理层将尽快答复你们相关的问题。我们感谢您对Nano Labs Ltd的兴趣与支持，期待下次与各位进行交谈。

Speaker 0

Thank you very much for joining this conference call. If you have any questions, please contact us through email at [email protected] or reach our IR counsel as Investor Relations at [email protected]. Management will respond to your question as soon as possible. We appreciate your interest and support in Nano Labs and look forward to speaking with you again next time.

Speaker 3

Thank you again for attending Nano Labs Ltd's first half of 2025 earnings conference call. This concludes our call for today, and we thank you all for listening in. Goodbye.

Speaker 1

Goodbye.