NaaS Technology Inc. Reports Unaudited 2023 Third Quarter Financial Results
Third Quarter 2023 Financial Highlights:
- Revenues1 grew by 536% year over year to a record setting
RMB170.9 million (US$23.4 million ) in the third quarter of 2023. - Gross margin increased from 6.1% to 27.4% year over year in the third quarter of 2023.
- Gross profit grew 28 times year over year to
RMB46.8 million (US$6.4 million ) in the third quarter of 2023. - Non-IFRS2 net loss attributable to ordinary shareholders was
RMB175.7 million (US$24.1 million ) in the third quarter of 2023 and non-IFRS net margin attributable to ordinary shareholders improved from negative 359% to negative 103%.
Third Quarter 2023 Operational Highlights:
- Charging volume transacted through NaaS' network reached 1,383 GWh in the third quarter of 2023, representing an increase of 66% year over year.
- Gross transaction value transacted through NaaS' network reached
RMB1.3 billion (US$178.8 million ) in the third quarter of 2023, representing an increase of 58% year over year. - Number of orders transacted through NaaS' network reached 59.2 million in the third quarter of 2023, representing an increase of 58% year over year.
- As of
September 30, 2023 , NaaS' network had connected 767,611 EV chargers covering 73,710 charging stations, up by 76% from 436,296 and 65% from 44,767 as ofSeptember 30, 2022 , respectively.
1 Effective as of the third quarter of 2023, the Company has changed its income statement presentation and retrospectively recast prior periods' income statement to conform to the current period presentation. The Company is now reporting revenues under Charging Services, Energy Solutions and New Initiatives, which management believes better reflects |
2 Non-IFRS net loss was arrived at after excluding share-based compensation expenses, equity-settled listing costs, fair value changes of instruments convertible to shares of the Company, and fair value changes of financial assets at fair value through profit or loss. Non-IFRS net margin was calculated by dividing non-IFRS net loss by total revenue. Please refer to the section titled "Unaudited reconciliations of IFRS and non-IFRS results" for details. |
Recent Developments
Became the First Batch of
In
Won Bid for Leading Integrated "PV-storage-charging-swapping" Project
In
Established Strategic Collaborations with ZSY, China Construction Bank, CIID and Tengzhou Municipal Government,
In
Conversion of LMR Convertible Notes
The Company issued a US$30 million convertible note and a
"Our exceptional third quarter operating and financial results reflect the significant expansion of our business. Led by our increasing capabilities in energy management and storage solutions, our total revenues increased six-fold year-over-year and tripled quarter-over-quarter," said
"We're pleased with our stellar third-quarter performance fueled by the significant growth in our energy solutions business, which contributed 81% of our revenues in the quarter," added Mr.
Third Quarter 2023 Financial Results:
Revenues
Total revenues reached
Charging services revenues contributed
Energy solutions revenues increased from
New initiatives revenues were
Cost of revenues, gross profit and margin
Total cost of revenues increased 392% year over year to
Total gross profit increased 28 times year over year from
Operating expenses
Total operating expenses were
Selling and marketing expenses increased from
Administrative expenses increased from
Research and development expenses increased from
Finance costs
Finance costs were
Income tax expenses
Net loss and non-IFRS net loss attributable to ordinary shareholders; Net margin and non-IFRS net margin
Net loss attributable to ordinary shareholders was
Outlook
Based on preliminary assessment of the current market conditions, the Company reaffirms its previous guidance and expects its full-year 2023 revenues to be between
Conference Call Information
The Company's management will host an earnings conference call at
Participants who wish to join the conference call should register online at:
https://s1.c-conf.com/diamondpass/10034495-gsp92v.html
Once registration is completed, participants will receive the dial-in information for the conference call.
Participants joining the conference call should dial-in at least 10 minutes before the scheduled start time.
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.enaas.com.
A replay of the conference call will be accessible approximately two hours after the conclusion of the live call until
Replay Access Code: 10034495
Exchange Rate
This press release contains translations of certain RMB amounts into USD at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of
Change in presentation of income statement
Effective as of the third quarter of 2023, the Company implemented certain changes to align its income statement presentation more closely with the manner in which the Company's management currently receives and uses financial information to evaluate business performance following the Company's expansion of business lines, extension of its services to a broader range of energy asset owners, including EV charging stations, PV and energy asset owners, and recent acquisitions. The Company now reports its revenues under three primary categories:
Charging services revenue, which includes income from the provision of mobility connectivity solutions to EV charging stations and the provision of charging services at charging stations that
Energy solutions revenue, which includes income from the provision of integrated charging facilities and energy storage solutions that cover the planning, deployment, production and optimization of EV charging, renewable energy and energy storage systems for energy asset owners.
New initiatives revenue, which includes income from electricity procurement services and other services that aim to enhance the efficiency and profitability of energy assets including charging stations, PV and energy storage assets.
The Company retrospectively recast prior periods' income statement information to conform to the current period presentation. The recasting involved the recategorization of revenues from mobility connectivity services and from full station operation model to charging services revenue; the inclusion of revenues from EPC services, hardware procurement, station upgrade and maintenance services to energy solutions revenue; and the reclassification of income from electricity procurement, non-charging services such as food and beverage and online advertising, virtual power plant and charging robots to new initiatives revenue. These changes have no material impact on
Non-IFRS Financial Measure
The Company uses non-IFRS net profit/loss and non-IFRS net margin for the period, which are non-IFRS financial measures, in evaluating its operating results and for financial and operational decision-making purposes.
Non-IFRS net profit/loss and non-IFRS net margin for the period should not be considered in isolation or construed as an alternative to operating profit or net profit for the period or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review non-IFRS net profit/loss and IFRS net margin for the period and the reconciliation to their most directly comparable IFRS measures. Non-IFRS net profit/loss and non-IFRS net margin for the period presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data.
Non-IFRS net profit/loss for the period represents profit/loss for the period excluding share-based compensation expenses, equity-settled listing costs, fair value changes of convertible and redeemable preferred shares, and fair value changes of financial assets at fair value through profit or loss. Non-IFRS margin for the period is calculated by dividing non-IFRS net loss for the period by total revenue for the period.
Merger Transactions
On
About
Safe Harbor Statement
This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the
For investor and media inquiries, please contact:
Investor Relations
E-mail: ir@enaas.com
Media inquiries:
E-mail: pr@enaas.com
|
||||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF LOSS AND OTHER COMPREHENSIVE LOSS |
||||||||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||||||||
|
|
|
|
|||||||||||||||||||
(In thousands, except for share and per share and per ADS data) |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||||||||||||
Charging services revenues |
25,519 |
31,506 |
4,318 |
60,323 |
81,516 |
11,173 |
||||||||||||||||
Energy solutions revenues |
265 |
138,795 |
19,023 |
1,492 |
171,099 |
23,451 |
||||||||||||||||
New initiatives revenues |
1,087 |
643 |
88 |
1,544 |
3,104 |
425 |
||||||||||||||||
Revenues |
26,871 |
170,944 |
23,429 |
63,359 |
255,719 |
35,049 |
||||||||||||||||
Cost of revenues |
(25,233) |
(124,115) |
(17,011) |
(64,377) |
(183,667) |
(25,174) |
||||||||||||||||
Gross profit |
1,638 |
46,829 |
6,418 |
(1,018) |
72,052 |
9,875 |
||||||||||||||||
Other gains, net |
6,346 |
4,965 |
681 |
8,954 |
11,926 |
1,635 |
||||||||||||||||
Operating expenses |
||||||||||||||||||||||
Selling and marketing expenses |
(67,713) |
(160,199) |
(21,957) |
(170,154) |
(312,684) |
(42,857) |
||||||||||||||||
Administrative expenses |
(25,486) |
(107,668) |
(14,757) |
(2,149,647) |
(414,974) |
(56,877) |
||||||||||||||||
Research and development expenses |
(10,256) |
(17,418) |
(2,387) |
(25,361) |
(36,431) |
(4,993) |
||||||||||||||||
Total operating expenses |
(103,455) |
(285,285) |
(39,101) |
(2,345,162) |
(764,089) |
(104,727) |
||||||||||||||||
Operating loss |
(95,471) |
(233,491) |
(32,002) |
(2,337,226) |
(680,111) |
(93,217) |
||||||||||||||||
Finance costs |
(9,819) |
(8,539) |
(1,170) |
(10,081) |
(22,842) |
(3,131) |
||||||||||||||||
Fair value changes of convertible and redeemable preferred |
— |
— |
— |
(3,158,498) |
— |
— |
||||||||||||||||
Fair value changes of financial instruments at fair value through |
— |
(120,985) |
(16,582) |
1,753 |
(105,854) |
(14,508) |
||||||||||||||||
Loss before income tax |
(105,290) |
(363,015) |
(49,754) |
(5,504,052) |
(808,807) |
(110,856) |
||||||||||||||||
Income tax expenses |
(3,760) |
(2,178) |
(298) |
(6,457) |
(415) |
(57) |
||||||||||||||||
Net loss |
(109,050) |
(365,193) |
(50,052) |
(5,510,509) |
(809,222) |
(110,913) |
||||||||||||||||
Net loss attributable to: |
||||||||||||||||||||||
Equity holders of the company |
(109,050) |
(366,863) |
(50,281) |
(5,510,509) |
(811,183) |
(111,182) |
||||||||||||||||
Non-controlling interests |
— |
1,670 |
229 |
— |
1,961 |
269 |
||||||||||||||||
(109,050) |
(365,193) |
(50,052) |
(5,510,509) |
(809,222) |
(110,913) |
|
|||||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF LOSS AND OTHER COMPREHENSIVE LOSS |
|||||||||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||
(In thousands, except for share and per share and per ADS data) |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||
Basic and diluted loss per share for loss attributable to the |
|||||||||||||||||||||||
Basic |
(0.05) |
(0.16) |
(0.02) |
(2.97) |
(0.37) |
(0.05) |
|||||||||||||||||
Diluted |
(0.05) |
(0.16) |
(0.02) |
(2.97) |
(0.37) |
(0.05) |
|||||||||||||||||
Basic and diluted loss per ADS for loss attributable to the |
|||||||||||||||||||||||
Basic |
(0.51) |
(1.63) |
(0.22) |
(29.74) |
(3.66) |
(0.50) |
|||||||||||||||||
Diluted |
(0.51) |
(1.63) |
(0.22) |
(29.74) |
(3.66) |
(0.50) |
|||||||||||||||||
Weighted average number of ordinary shares outstanding-basic |
2,137,608,219 |
2,249,586,003 |
2,249,586,003 |
1,852,683,306 |
2,218,815,732 |
2,218,815,732 |
|||||||||||||||||
Weighted average number of ordinary shares outstanding- |
2,137,608,219 |
2,249,586,003 |
2,249,586,003 |
1,852,683,306 |
2,218,815,732 |
2,218,815,732 |
|||||||||||||||||
Net loss |
(109,050) |
(365,193) |
(50,052) |
(5,510,509) |
(809,222) |
(110,913) |
|||||||||||||||||
Other comprehensive loss that will not be reclassified to profit |
|||||||||||||||||||||||
Fair value changes on equity investment designated at fair |
— |
(4,363) |
(602) |
— |
(25,979) |
(3,583) |
|||||||||||||||||
Currency translation differences |
17,222 |
(1,258) |
(173) |
16,638 |
(1,583) |
(218) |
|||||||||||||||||
Other comprehensive loss, net of tax |
17,222 |
(5,621) |
(775) |
16,638 |
(27,562) |
(3,801) |
|||||||||||||||||
Total comprehensive loss |
(91,828) |
(370,814) |
(50,827) |
(5,493,871) |
(836,784) |
(114,714) |
|||||||||||||||||
Total comprehensive loss attributable to: |
|||||||||||||||||||||||
Equity holders of the company |
(91,828) |
(372,484) |
(51,056) |
(5,493,871) |
(838,745) |
(114,983) |
|||||||||||||||||
Non-controlling interests |
— |
1,670 |
229 |
— |
1,961 |
269 |
|||||||||||||||||
(91,828) |
(370,814) |
(50,827) |
(5,493,871) |
(836,784) |
(114,714) |
NAAS TECHNOLOGY INC. |
|||||||||||||||||||||||
UNAUDITED RECONCILIATIONS OF IFRS AND NON-IFRS RESULTS |
|||||||||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||
(In thousands, except for share and per |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||
Reconciliation of Adjusted net loss |
|||||||||||||||||||||||
Net loss attributable to ordinary |
(109,050) |
(366,863) |
(50,281) |
(5,510,509) |
(811,183) |
(111,182) |
|||||||||||||||||
Add: Share-based compensation expenses |
12,521 |
70,160 |
9,616 |
198,781 |
319,348 |
43,770 |
|||||||||||||||||
Equity-settled listing costs |
— |
— |
— |
1,912,693 |
— |
— |
|||||||||||||||||
Fair value changes of instruments |
120,400 |
16,502 |
120,400 |
16,502 |
|||||||||||||||||||
Fair value changes of convertible and |
— |
— |
— |
3,158,498 |
— |
— |
|||||||||||||||||
Fair value changes of financial assets |
— |
585 |
80 |
(1,753) |
(14,546) |
(1,994) |
|||||||||||||||||
Adjusted net loss attributable to |
(96,529) |
(175,718) |
(24,083) |
(242,290) |
(385,981) |
(52,904) |
|||||||||||||||||
Adjusted net basic and diluted loss per |
|||||||||||||||||||||||
Basic |
(0.05) |
(0.08) |
(0.01) |
(0.13) |
(0.17) |
(0.02) |
|||||||||||||||||
Diluted |
(0.05) |
(0.08) |
(0.01) |
(0.13) |
(0.17) |
(0.02) |
|||||||||||||||||
Adjusted net basic and diluted loss per |
|||||||||||||||||||||||
Basic |
(0.45) |
(0.78) |
(0.11) |
(1.31) |
(1.74) |
(0.24) |
|||||||||||||||||
Diluted |
(0.45) |
(0.78) |
(0.11) |
(1.31) |
(1.74) |
(0.24) |
|||||||||||||||||
Weighted average number of ordinary |
2,137,608,219 |
2,249,586,003 |
2,249,586,003 |
1,852,683,306 |
2,218,815,732 |
2,218,815,732 |
|||||||||||||||||
Weighted average number of ordinary |
2,137,608,219 |
2,249,586,003 |
2,249,586,003 |
1,852,683,306 |
2,218,815,732 |
2,218,815,732 |
|
|||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
|||||||||
As of |
|||||||||
|
|
||||||||
(In thousands) |
RMB |
RMB |
US$ |
||||||
ASSETS |
|||||||||
Current assets |
|||||||||
Cash and cash equivalents |
513,351 |
396,072 |
54,286 |
||||||
Trade receivables |
130,004 |
233,704 |
32,032 |
||||||
Contract assets |
— |
100,263 |
13,742 |
||||||
Financial assets at fair value through profit or loss |
— |
178,146 |
24,417 |
||||||
Inventories |
— |
18,852 |
2,584 |
||||||
Prepayments, other receivables and other assets |
287,435 |
555,699 |
76,165 |
||||||
Other financial assets |
— |
129,079 |
17,692 |
||||||
Total current assets |
930,790 |
1,611,815 |
220,918 |
||||||
Non-current assets |
|||||||||
Right-of-use assets |
17,030 |
12,984 |
1,780 |
||||||
Financial assets at fair value through profit or loss |
11,753 |
16,260 |
2,229 |
||||||
Financial assets at fair value through other comprehensive income |
129,060 |
103,081 |
14,128 |
||||||
Investments accounted for using equity method |
— |
160 |
22 |
||||||
Property, plant and equipment |
2,600 |
4,263 |
584 |
||||||
Other non-current assets |
13,869 |
9,221 |
1,264 |
||||||
Intangible assets |
833 |
11,572 |
1,586 |
||||||
|
— |
40,590 |
5,563 |
||||||
Total non-current assets |
175,145 |
198,131 |
27,156 |
||||||
Total assets |
1,105,935 |
1,809,946 |
248,074 |
||||||
LIABILITIES AND EQUITY |
|||||||||
Current liabilities |
|||||||||
Interest-bearing bank borrowings |
38,000 |
149,582 |
20,502 |
||||||
Current lease liabilities |
6,853 |
6,567 |
900 |
||||||
Trade payables |
49,239 |
181,061 |
24,816 |
||||||
Income tax payables |
16,214 |
16,258 |
2,228 |
||||||
Convertible bonds |
— |
503,888 |
69,064 |
||||||
Other payables and accruals |
81,835 |
218,660 |
29,971 |
||||||
Total current liabilities |
192,141 |
1,076,016 |
147,481 |
||||||
Non-current liabilities |
|||||||||
Non-current lease liabilities |
9,327 |
5,854 |
802 |
||||||
Interest-bearing bank borrowings |
465,155 |
555,191 |
76,095 |
||||||
Deferred tax liabilities |
438 |
2,344 |
321 |
||||||
Total non-current liabilities |
474,920 |
563,389 |
77,218 |
||||||
Total liabilities |
667,061 |
1,639,405 |
224,699 |
||||||
EQUITY |
|||||||||
Share capital |
146,730 |
151,598 |
20,778 |
||||||
Additional paid in capital |
6,358,600 |
6,919,111 |
948,343 |
||||||
Accumulated losses |
(6,031,255) |
(6,842,438) |
(937,834) |
||||||
Other reserves |
(35,201) |
(62,763) |
(8,602) |
||||||
Non-controlling interests |
— |
5,033 |
690 |
||||||
Total equity |
438,874 |
170,541 |
23,375 |
||||||
Total equity and liabilities |
1,105,935 |
1,809,946 |
248,074 |
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