Company Overview - Nano Labs Ltd is a leading Web 3.0 infrastructure and product solution provider in China, focusing on high throughput computing (HTC) and high performance computing (HPC) chips [5] - The company has accumulated nearly US$170 million in mainstream digital currencies, including BNB and BTC, and has established an integrated platform covering multiple business verticals [5] Leadership Appointment - Dr. Kailong Cai has been appointed as the CEO of Nano bit HK Limited, a wholly-owned subsidiary of Nano Labs, responsible for driving strategic upgrades and overseeing global operations [1] - Dr. Cai is a renowned expert in crypto finance with a Ph.D. in finance and extensive experience in both Chinese and U.S. financial markets, including roles at Jasper Crypto Fund and Huobi Group [2][3] Strategic Vision - The appointment of Dr. Cai is expected to enhance Nano Labs' strategic reserves of core crypto assets and refine its asset-liability structure using capital market instruments [4] - The company aims to become a leading public cryptocurrency reserve company in Asia with global influence, providing investors with efficient and transparent access to crypto asset allocation [4]

Core Insights - Nano Labs Ltd has announced a strategic partnership with Orbiter Finance to develop a compliant stablecoin distribution and exchange service across multiple networks [1][2] - The new solution aims to provide low-cost, compliant cross-chain transfers and mainstream token exchanges, with an expected launch in Q4 2025 [2][3] - The collaboration is designed to promote the adoption of compliant stablecoins in both DeFi and traditional finance sectors [3] Company Overview - Nano Labs Ltd is a leading Web 3.0 infrastructure and product solution provider in China, focusing on high throughput computing (HTC) and high performance computing (HPC) chips [5] - The company has accumulated nearly USD 160 million in mainstream digital currencies, including BNB and BTC, and has established an integrated platform covering multiple business verticals [5][6] - Nano Labs has built a comprehensive flow processing unit (FPU) architecture that integrates features of both HTC and HPC [5] Orbiter Finance Overview - Orbiter Finance is a leading Layer 2 cross-chain bridge protocol that has processed over USD 23 billion in transaction volume to date [4]

Digital Asset Investment - Nano Labs expands digital asset reserves to approximately $160 million [1] - Nano Labs purchased $50 million worth of $BNB tokens [1]

Group 1 - Nano Labs Ltd has purchased 74,315 Binance Coin (BNB) tokens for approximately US$50 million, averaging US$672.45 per token, increasing its total digital currency reserves to around US$160 million [1][2] - The company plans to evaluate the security and long-term value of BNB, with an aim to acquire up to US$1 billion worth of BNB through convertible notes and private placements in the initial phase [2] - Over the long term, Nano Labs intends to hold 5% to 10% of BNB's total circulating supply [2] Group 2 - Nano Labs Ltd is a leading Web 3.0 infrastructure and product solution provider in China, focusing on high throughput computing (HTC) and high performance computing (HPC) chips [3] - The company has developed a comprehensive flow processing unit (FPU) architecture that integrates features of both HTC and HPC [3] - Nano Labs has established Bitcoin as its primary reserve asset and has built an integrated solution platform covering three main business verticals, including HTC and HPC solutions [3]

Group 1 - Nano Labs Ltd has entered into a securities purchase agreement to purchase 5,952,381 Class A ordinary shares in a registered direct offering, along with warrants for the same number of shares [1][2] - The effective offering price for each ordinary share and accompanying warrant is $8.40, with gross proceeds estimated at approximately $50.0 million before expenses [1][2] - The warrants are immediately exercisable, expire five years from the effective registration statement date, and have an initial exercise price of $10.00 per share [1][2] Group 2 - Proceeds from the offering and exercise of the warrants will be used to acquire BNB (Binance Coin) as part of the company's digital asset strategy [2] - The offering is expected to close on or about June 27, 2025, subject to customary closing conditions [2] Group 3 - The ordinary shares are being offered under a shelf registration statement declared effective by the SEC on September 1, 2023 [3] - The warrants issued in the private placement have not been registered under the Securities Act or applicable state securities laws [3] Group 4 - Nano Labs Ltd is a leading Web 3.0 infrastructure and product solution provider in China, focusing on high throughput computing (HTC) and high performance computing (HPC) chips [5] - The company has developed a comprehensive flow processing unit (FPU) architecture and has established Bitcoin as a primary reserve asset [5] - Nano Labs has created an integrated solution platform covering three main business verticals, including HTC and HPC solutions [5]

Core Viewpoint - Nano Labs Ltd has entered into a convertible notes purchase agreement to issue convertible promissory notes totaling US$500 million, marking a significant step in its strategic growth [1][4]. Group 1: Convertible Notes Details - The convertible notes will mature in 360 days with no interest accruing on the principal amount [2]. - The notes are convertible into Class A ordinary shares at an initial price of US$20 per share, subject to adjustments [2]. - The company will repay the outstanding principal amount on the maturity date unless previously converted [2]. Group 2: Strategic Growth Initiatives - As part of its growth strategy, Nano Labs plans to assess the security and value of BNB and aims to acquire US$1 billion worth of BNB through convertible notes and private placements [4]. - The long-term goal is to hold 5% to 10% of BNB's total circulating supply [4]. Group 3: Company Overview - Nano Labs Ltd is a leading provider of Web 3.0 infrastructure and product solutions in China, focusing on high throughput computing (HTC) and high performance computing (HPC) chips [5]. - The company has developed a comprehensive flow processing unit (FPU) architecture that integrates features of both HTC and HPC [5]. - Nano Labs has established Bitcoin as its primary reserve asset and has created an integrated solution platform covering three main business verticals [5].

PART I [Item 3. Key Information](index=7&type=section&id=Item%203.%20KEY%20INFORMATION) The company details its Cayman Islands holding structure, China-based operational risks, and regulatory compliance - Nano Labs Ltd is a Cayman Islands holding company, not a Chinese operating company; its operations are conducted through subsidiaries in China and Hong Kong[17](index=17&type=chunk) - The company has completed necessary filings with the China Securities Regulatory Commission (CSRC) for its follow-on offerings and will continue to do so for future offerings[29](index=29&type=chunk) - The company's auditor, MaloneBailey, LLP, is registered with the PCAOB, which currently has complete access to inspect firms in mainland China and Hong Kong[20](index=20&type=chunk)[190](index=190&type=chunk) Cash Transfers to PRC Subsidiaries | Year | Amount Transferred (US$) | | :--- | :--- | | 2022 | 24.3 million | | 2023 | 17.5 million | | 2024 | 13.1 million | [Risk Factors](index=12&type=section&id=D.%20Risk%20Factors) The company faces significant business, operational, and regulatory risks, with concentrated voting power held by its founder - Key business risks include technological obsolescence, **high volatility in the cryptocurrency market**, supplier reliance, and significant revenue concentration from mining machines[46](index=46&type=chunk)[51](index=51&type=chunk)[55](index=55&type=chunk) - Operational risks include a **history of net losses and negative operating cash flows**, high customer concentration, and a **material weakness in internal control** over financial reporting[44](index=44&type=chunk)[96](index=96&type=chunk)[143](index=143&type=chunk) - Significant risks related to conducting business in China include PRC government influence, legal system uncertainties, potential delisting, and cybersecurity regulations[50](index=50&type=chunk)[177](index=177&type=chunk)[188](index=188&type=chunk) - The company's dual-class share structure concentrates voting power, with **Mr. Jianping Kong holding approximately 53.7% of the total voting power**, making it a "controlled company"[227](index=227&type=chunk)[228](index=228&type=chunk) [Item 4. Information on the Company](index=60&type=section&id=Item%204.%20INFORMATION%20ON%20THE%20COMPANY) The company operates as a fabless Web 3.0 infrastructure provider specializing in HTC and HPC chips [History and Development](index=60&type=section&id=A.%20History%20and%20development%20of%20the%20company) The company was incorporated in 2021, listed on Nasdaq in 2022, and executed several corporate actions in 2024-2025 - The business began in July 2019, and the Cayman Islands holding company, Nano Labs Ltd, was incorporated in January 2021[258](index=258&type=chunk)[259](index=259&type=chunk) - American Depositary Shares (ADS) began trading on Nasdaq on July 12, 2022, and the ADS facility was terminated effective February 1, 2024[9](index=9&type=chunk)[260](index=260&type=chunk) - The company executed a **2-to-1 share consolidation** in January 2024 and a **10-to-1 consolidation** in November 2024[10](index=10&type=chunk)[261](index=261&type=chunk) - On March 7, 2025, the company increased its authorized share capital and **increased votes per Class B share from 15 to 30**[11](index=11&type=chunk)[262](index=262&type=chunk) [Business Overview](index=61&type=section&id=B.%20Business%20Overview) The company develops HTC and HPC chips, operates a fabless model, and has adopted Bitcoin as a primary reserve asset - Nano Labs is a Web 3.0 infrastructure provider focused on developing High Throughput Computing (HTC) and High-Performance Computing (HPC) chips[265](index=265&type=chunk)[266](index=266&type=chunk) - The company adopted **Bitcoin as its primary reserve asset** and established Bitcoin value investment as a new business sector, holding approximately 401 Bitcoins as of April 10, 2025[277](index=277&type=chunk)[281](index=281&type=chunk) - The company operates on a fabless model, collaborating with third-party foundries for IC fabrication, packaging, and testing to focus resources on R&D[76](index=76&type=chunk)[285](index=285&type=chunk) R&D Expenses (RMB) | Year | R&D Expense | | :--- | :--- | | 2022 | 131.9 million | | 2023 | 88.6 million | | 2024 | 50.1 million | Cryptocurrency Holdings (as of Dec 31, 2024) | Cryptocurrency | Quantity | Fair Value (US$) | | :--- | :--- | :--- | | Bitcoin | ~361 | 33.8 million | | USDT | 9 | 9 | [Organizational Structure](index=83&type=section&id=C.%20Organizational%20Structure) The company is a Cayman Islands holding company operating through a network of international subsidiaries - Nano Labs Ltd is a Cayman Islands holding company that operates through a network of subsidiaries primarily located in the Cayman Islands, BVI, Hong Kong, and China[376](index=376&type=chunk) [Operating and Financial Review and Prospects](index=85&type=section&id=Item%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) The company experienced a significant revenue decline and net losses, alongside identifying a material weakness in financial controls [Operating Results](index=85&type=section&id=A.%20Operating%20results) Net revenues declined sharply in 2024 due to lower mining product sales, though gross profit returned to positive Consolidated Financial Performance (RMB) | Metric | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | **Total Net Revenues** | 983.2 million | 78.3 million | 40.6 million | | **Gross Profit (Loss)** | 230.2 million | (103.4 million) | 11.6 million | | **Profit (Loss) from Operations** | 20.7 million | (260.8 million) | (98.5 million) | | **Net Income (Loss)** | 31.1 million | (254.4 million) | (119.5 million) | - The decrease in net revenues in 2024 to **RMB 40.6 million** from RMB 78.3 million in 2023 was primarily due to lower sales of iPollo V Series products[417](index=417&type=chunk) - The company recorded significant inventory write-downs of **RMB 184.1 million**, **RMB 60.8 million**, and **RMB 10.9 million** in 2022, 2023, and 2024, respectively[396](index=396&type=chunk)[398](index=398&type=chunk) - In 2024, the company recorded a **loss of RMB 15.7 million** from the change in fair value of its cryptocurrency holdings[423](index=423&type=chunk) [Liquidity and Capital Resources](index=93&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by financing activities, including share issuances and bank loans, to fund operations and investments Consolidated Cash Flow Data (RMB) | Metric | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | **Net cash used in operating activities** | (274.9 million) | (133.5 million) | (139.3 million) | | **Net cash used in investing activities** | (33.2 million) | (105.5 million) | (256.8 million) | | **Net cash provided by financing activities** | 161.0 million | 199.5 million | 376.0 million | - Net cash used in investing activities in 2024 was **RMB 256.8 million**, primarily due to **RMB 220.4 million in cryptocurrency purchases**[443](index=443&type=chunk) - Net cash from financing activities in 2024 was **RMB 376.0 million**, mainly from proceeds from the issuance of ordinary shares and warrants[446](index=446&type=chunk) - As of December 31, 2024, the company had a credit line of RMB 198 million, with an outstanding borrowing balance of approximately **RMB 176.0 million**[434](index=434&type=chunk) [Internal Control Over Financial Reporting](index=95&type=section&id=Internal%20Control%20Over%20Financial%20Reporting) A material weakness was identified due to a lack of sufficient accounting personnel with U.S. GAAP expertise - A **material weakness** was identified in the company's internal control over financial reporting as of December 31, 2024[451](index=451&type=chunk)[659](index=659&type=chunk) - The material weakness is related to a **lack of sufficient accounting personnel** with adequate knowledge in financial reporting in accordance with U.S. GAAP[452](index=452&type=chunk)[660](index=660&type=chunk) - The company plans to remediate this weakness by hiring additional qualified accounting personnel and enhancing its internal audit function[453](index=453&type=chunk)[661](index=661&type=chunk) [Directors, Senior Management, and Employees](index=98&type=section&id=Item%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) Leadership compensation is disclosed, with significant voting power concentrated in the Chairman and Vice Chairman - The aggregate cash compensation for directors and executive officers in 2024 was approximately **RMB 3.9 million (US$0.5 million)**[469](index=469&type=chunk) - The company adopted the 2022 Share Incentive Plan, authorizing a maximum of **10,379,000 Class A ordinary shares** for awards[474](index=474&type=chunk) - As of December 31, 2024, the company had 88 employees, with **30.7% in research and development**[301](index=301&type=chunk)[502](index=502&type=chunk) - Mr. Jianping Kong (Chairman & CEO) and Mr. Qifeng Sun (Vice Chairman) control **53.7% and 35.9% of the total voting power**, respectively[509](index=509&type=chunk) [Major Shareholders and Related Party Transactions](index=109&type=section&id=Item%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) Principal shareholders provided financial support through loan guarantees and participated in private placements - Principal shareholders Jianping Kong and Qifeng Sun provided guarantees for company debts and offered interest-free loans converted into Class A ordinary shares[514](index=514&type=chunk)[525](index=525&type=chunk)[527](index=527&type=chunk) - In December 2024, the company closed a private placement of 5.6 million Class A ordinary shares for gross proceeds of approximately **US$36.3 million**[528](index=528&type=chunk) - In February 2025, the company sold 913,714 Class A ordinary shares for approximately **US$5.9 million**, satisfied in Bitcoin and USDT[529](index=529&type=chunk) [Financial Information](index=111&type=section&id=Item%208.%20FINANCIAL%20INFORMATION) The company does not plan to pay dividends and is involved in an ongoing legal proceeding with a customer - The company has **no current plans to pay cash dividends** and intends to retain future earnings to fund business development and growth[534](index=534&type=chunk) - A customer filed a civil action against a subsidiary on March 5, 2024, over a sales contract dispute, demanding a return of payment of approximately **RMB 3.0 million**[308](index=308&type=chunk) [Additional Information](index=113&type=section&id=Item%2010.%20ADDITIONAL%20INFORMATION) The company maintains a dual-class share structure with significantly weighted voting rights for Class B shares - As of the report date, the authorized share capital is **US$4,200,000**, divided into 2.1 billion shares[544](index=544&type=chunk) - The company has a dual-class share structure where each **Class B ordinary share has thirty votes**, while each Class A ordinary share has one vote[551](index=551&type=chunk)[552](index=552&type=chunk)[553](index=553&type=chunk) - The company does not believe it was a Passive Foreign Investment Company (PFIC) for the 2024 taxable year, but this determination is made annually[608](index=608&type=chunk)[609](index=609&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=131&type=section&id=Item%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risks include high supplier concentration and foreign currency exchange rate fluctuations - The company faces significant supplier concentration risk; in 2024, a **single supplier accounted for 29% of total purchases**[636](index=636&type=chunk) - The company is exposed to currency risk and recognized a foreign currency translation loss of **RMB 0.8 million (US$0.1 million)** in 2024[638](index=638&type=chunk) [Use of Proceeds](index=133&type=section&id=Item%2014.%20MATERIAL%20MODIFICATIONS%20TO%20THE%20RIGHTS%20OF%20SECURITY%20HOLDERS%20AND%20USE%20OF%20PROCEEDS) The company has utilized approximately US$48.8 million from its IPO and follow-on offerings for R&D and operations Use of Proceeds (from July 2022 to Report Date) | Use Category | Amount Spent (US$) | | :--- | :--- | | R&D of new products | ~20.6 million | | Supply chain optimization | ~15.1 million | | Brand and global sales network | ~6.9 million | | Working capital & daily operations | ~6.1 million | | **Total** | **~48.8 million** | [Controls and Procedures](index=134&type=section&id=Item%2015.%20CONTROLS%20AND%20PROCEDURES) Disclosure controls were deemed ineffective as of year-end 2024 due to a previously identified material weakness - Management concluded that as of December 31, 2024, the company's **disclosure controls and procedures were not effective** due to a material weakness[654](index=654&type=chunk)[657](index=657&type=chunk) - The identified material weakness is a **lack of sufficient accounting personnel** with adequate knowledge of U.S. GAAP financial reporting[660](index=660&type=chunk) [Cybersecurity](index=138&type=section&id=ITEM%2016K.%20CYBERSECURITY) The company maintains a cybersecurity risk management program and reported no material incidents in 2024 - The company has an internally managed cybersecurity risk management framework overseen by the board of directors and executed by a dedicated IT staff[681](index=681&type=chunk)[683](index=683&type=chunk) - **No material cybersecurity incidents** were reported for the year ended December 31, 2024[682](index=682&type=chunk) Financial Statements [Report of Independent Registered Public Accounting Firm](index=142&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The auditor issued an unqualified opinion on the consolidated financial statements, which conform with U.S. GAAP - The independent auditor, MaloneBailey, LLP, issued an **unqualified (clean) opinion** on the company's consolidated financial statements for fiscal years 2022, 2023, and 2024[699](index=699&type=chunk) - The auditor confirmed that the financial statements conform with U.S. Generally Accepted Accounting Principles (U.S. GAAP)[699](index=699&type=chunk) - The company was not required to have, and the auditor did not perform, an audit of its internal control over financial reporting[701](index=701&type=chunk) [Consolidated Financial Statements](index=143&type=section&id=Consolidated%20Financial%20Statements) The company ended 2024 with total assets of RMB 615.9 million and reported a net loss of RMB 119.5 million Consolidated Balance Sheet Highlights (as of Dec 31, 2024) | Account | Amount (RMB) | Amount (US$) | | :--- | :--- | :--- | | **Total Assets** | 615.9 million | 85.7 million | | Cash and cash equivalents | 32.4 million | 4.5 million | | Cryptocurrencies | 242.9 million | 33.8 million | | **Total Liabilities** | 383.0 million | 53.3 million | | **Total Shareholders' Equity** | 232.9 million | 32.4 million | Consolidated Statement of Operations Highlights (Year ended Dec 31, 2024) | Account | Amount (RMB) | Amount (US$) | | :--- | :--- | :--- | | **Net Revenues** | 40.6 million | 5.6 million | | **Gross Profit** | 11.6 million | 1.6 million | | **Loss from Operations** | (98.5 million) | (13.7 million) | | **Net Loss** | (119.5 million) | (16.6 million) | [Notes to the Consolidated Financial Statements](index=148&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail key accounting policies, including fair value measurement for cryptocurrencies and revenue recognition timing [Note 2. Summary of Significant Accounting Policies](index=150&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) The company's reporting currency is RMB, and it adopted fair value accounting for cryptocurrencies in 2024 - The company's reporting currency is RMB; the functional currency for PRC entities is RMB, while for entities outside the PRC, it is the US dollar[725](index=725&type=chunk) - Effective January 31, 2024, the company adopted ASC 350-60, **measuring cryptocurrencies at fair value** with changes reported in the statements of operations[743](index=743&type=chunk) - Revenue from product sales is recognized at a point in time when control of the products is transferred to the customer[751](index=751&type=chunk) [Note 6. Cryptocurrencies](index=158&type=section&id=Note%206.%20Cryptocurrencies) The company held 361 Bitcoin at year-end 2024 and recorded an unrealized loss of RMB 15.7 million for the year Cryptocurrency Holdings as of December 31, 2024 | Cryptocurrency | Quantity | Cost Basis (RMB) | Fair Value (RMB) | | :--- | :--- | :--- | :--- | | Bitcoin | 361 | 256,709,226 | 242,889,018 | | USDT | 9 | 67 | 67 | - For the year ended December 31, 2024, the company recorded an **unrealized loss of RMB 15.7 million** on its cryptocurrency holdings[780](index=780&type=chunk) [Note 11. Short-term and long-term debts](index=161&type=section&id=Note%2011.%20Short-term%20and%20long-term%20debts) As of year-end 2024, the company had total debt of RMB 194.0 million, secured by assets and shareholder guarantees - As of December 31, 2024, the company had **RMB 18.0 million in short-term debt** and **RMB 176.0 million in long-term debt**[791](index=791&type=chunk)[793](index=793&type=chunk) - The company has a line of credit up to **RMB 198.0 million**, secured by assets and guarantees from principal shareholders[792](index=792&type=chunk) [Note 12. Shareholders' equity (deficit)](index=162&type=section&id=Note%2012.%20Shareholders'%20equity%20(deficit)) The company executed two reverse stock splits in 2024 and raised capital through several private placements - The company executed two reverse stock splits in 2024: a **2-for-1 split** and a **10-for-1 split**, with all share data retrospectively adjusted[794](index=794&type=chunk)[795](index=795&type=chunk)[796](index=796&type=chunk) - In April 2024, the company issued 434,784 Class A ordinary shares and warrants for gross proceeds of approximately **US$5.0 million**[799](index=799&type=chunk) - In December 2024, the company issued 5,611,459 Class A ordinary shares for gross proceeds of **US$36.3 million**, satisfied with cash, Bitcoin, and USDT[803](index=803&type=chunk) [Note 13. Share-based compensation](index=163&type=section&id=Note%2013.%20Share-based%20compensation) Share-based compensation expense decreased significantly in 2024 compared to prior years - The company's 2022 Share Incentive Plan authorizes up to **518,950 Class A ordinary shares** for issuance[806](index=806&type=chunk) - Share-based compensation expense related to options was RMB 9.3 million, RMB 0.7 million, and **RMB 0.4 million** for 2022, 2023, and 2024, respectively[815](index=815&type=chunk) [Note 18. Concentrations](index=170&type=section&id=Note%2018.%20Concentrations) The company exhibits significant customer and supplier concentration, with one supplier accounting for 29% of purchases Customer and Supplier Concentration (2024) | Type | Party | % of Total | | :--- | :--- | :--- | | Customer | Customer A | 13% | | Customer | Customer B | 12% | | Customer | Customer C | 11% | | Supplier | Supplier E | 29% | [Note 20. Subsequent events](index=171&type=section&id=Note%2020.%20Subsequent%20events) In early 2025, the company issued additional shares and increased the voting power of its Class B shares - In February 2025, the company issued 913,714 Class A ordinary shares for **US$5.9 million**, paid for with Bitcoin and USDT[843](index=843&type=chunk) - On March 7, 2025, shareholders approved an increase in authorized share capital and **increased the votes per Class B ordinary share from 15 to 30**[844](index=844&type=chunk)

Financial Data and Key Metrics Changes - In the second half of 2024, the company's net revenue was RMB 15.86 million ($2.21 million), a decline from RMB 26.07 million in the same period last year [9] - Gross profit for the second half of 2024 was RMB 11.57 million ($1.61 million), compared to a gross loss of RMB 40.55 million in the same period of 2023 [10] - Loss from operations was RMB 39.82 million ($5.54 million) for the second half of 2024, an improvement from a loss of RMB 124.4 million in the same period of 2023 [13] - Net loss was RMB 60.39 million ($8.4 million) for the second half of 2024, compared to a net loss of RMB 120 million in the same period of 2023 [13] - Basic and diluted loss per share was RMB 6.01 ($0.84) for the second half of 2024, down from RMB 19.12 in the same period of 2023 [13] - As of December 31, 2024, cash and cash equivalents were RMB 32.43 million ($4.51 million), down from RMB 48.16 million as of December 31, 2023 [14] Business Line Data and Key Metrics Changes - The decline in net revenue was primarily due to decreased sales volume of the iPollo V Series product [9] - Total operating expenses decreased by 38.7% to RMB 51.39 million ($7.15 million) from RMB 83.84 million in the same period of 2023 [11] - Selling and marketing expenses dropped by 17.7% to RMB 4.8 million ($0.67 million) compared to RMB 5.83 million in the same period of 2023 [11] - General and administrative expenses increased by 30.5% to RMB 25.38 million ($3.83 million) from RMB 22.38 million for the same period of 2023 [12] - Research and development expenses decreased by 61.9% to RMB 28.93 million ($4.06 million) from RMB 32.97 million for the same period of 2023 [12] Market Data and Key Metrics Changes - The company has established Bitcoin as a primary reserve asset, holding about 400 BTC with a total purchase price of around $40 million [6] - The launch of an upgraded complete machine equipped with a Cuckoo 3.0% iteration chip is expected to enhance performance and expand market share [6][7] Company Strategy and Development Direction - The company aims to deepen its expertise in the Web3.0% space and develop AI applications integrated with Web3.0% technologies [7] - Future development will focus on the broader metaverse ecosystem, starting with the design of cryptocurrency IC chips [24] Management's Comments on Operating Environment and Future Outlook - Management believes Bitcoin is a strategic asset with long-term value and potential for appreciation, serving as foundational infrastructure for Web3.0% development [17][18] - The company is optimistic about its business strategy and ability to capture development opportunities for long-term growth [14] Other Important Information - The company is committed to optimizing product management and operations while preparing to seize emerging market opportunities [27] Q&A Session Summary Question: Why is the company considering increasing its holdings of Bitcoin? - Management believes Bitcoin is a strategic asset with long-term value and a potential hedge against inflation, with significant room for appreciation [16][17] Question: What considerations have driven the company's recent financing activities? - Recent financing activities were driven by business adjustments and expansion initiatives, particularly increased investment in Bitcoin [20][21] Question: What is the company's plan for future development? - The company sees massive opportunities within the broader metaverse ecosystem and will focus on cryptocurrency IC chip design and AI plus Web3.0% development [23][24] Question: The company's income is not significant at present. Do you have any expectations for the future? - Management indicated that the impact of Cuckoo 3.0% equipped machines will be reflected in this year's business performance, with a focus on optimizing operations [26][27]

Core Viewpoint - Nano Labs Ltd has reported its financial results for the second half of 2024, highlighting a strategic shift towards Bitcoin investment and the launch of upgraded products, despite facing a decrease in net revenue compared to the previous year [1][3][5]. Financial Performance - Net revenue for the second half of 2024 was RMB 15.9 million (US$ 2.2 million), a decrease from RMB 26.1 million in the same period of 2023 [6][9]. - The net loss for the second half of 2024 was RMB 60.4 million (US$ 8.4 million), significantly improved from a net loss of RMB 120.0 million in the same period of 2023 [5][15]. - Gross profit for the second half of 2024 was RMB 11.6 million (US$ 1.6 million), compared to a gross loss of RMB 40.6 million in the same period of 2023 [9]. Cost Structure - Cost of revenues decreased to RMB 4.3 million (US$ 0.6 million) for the second half of 2024, down from RMB 66.6 million in the same period of 2023, primarily due to reduced sales volume [7]. - Total operating expenses decreased by 38.7% to RMB 51.4 million (US$ 7.1 million) for the second half of 2024, compared to RMB 83.8 million in the same period of 2023 [8]. Strategic Developments - The company has established Bitcoin value investment as a new business sector, holding approximately 400 BTC valued at around US$ 40 million [3]. - An upgraded machine equipped with the Cuckoo 3.0 iteration chip was released in December 2024, enhancing performance and market competitiveness [4]. Cash Position - As of December 31, 2024, the company had cash and cash equivalents of RMB 32.4 million (US$ 4.5 million), down from RMB 48.2 million as of December 31, 2023 [17]. Shareholder Information - Basic and diluted loss per share for the second half of 2024 was RMB 6.01 (US$ 0.84), compared to RMB 19.12 in the same period of 2023 [16]. Non-GAAP Financial Measures - The adjusted net loss for the six months ended December 31, 2024, was RMB 60.3 million (US$ 8.4 million), compared to RMB 119.5 million in the same period of 2023 [19][30].

Company Overview - Nano Labs Ltd is a leading fabless integrated circuit design company and product solution provider in China, focusing on high throughput computing (HTC) chips, high performance computing (HPC) chips, distributed computing and storage solutions, smart network interface cards (NICs), vision computing chips, and distributed rendering [4][5] - The company has developed a comprehensive flow processing unit (FPU) architecture that integrates features of both HTC and HPC [4] Financial Results Announcement - Nano Labs will report its unaudited financial results for the six months ended December 31, 2024, before the U.S. market opens on March 25, 2025 [1] - An earnings conference call will be held on March 25, 2025, at 8:30 am U.S. Eastern Time to discuss the financial results [2] Conference Call Details - Participants can register for the conference call through a provided link and will receive a dial-in number and unique PIN upon registration [3] - A live and archived webcast of the conference call will be available on the company's investor relations website [3] Replay Information - A telephone replay of the conference call will be available until April 1, 2025, with specific dial-in numbers for different regions [4]