Nano Labs Ltd (NASDAQ:NA) Q4 2023 Earnings Call Transcript March 18, 2024 8:30 AM ET Company Participants Jianping Kong - Chairman and CEO Bing Chen - CFO Operator Ladies and gentlemen, thank you for standing by. Welcome to Nano Labs' Second Half of Fiscal Year 2023 Earnings Conference Call. [Operator Instructions]. This conference is being recorded today, Monday, March 18, 2024. Joining us today from Nano Labs are the company's Chairman and Chief Executive Officer, Mr. Jianping Kong; and the company's Chie ...

HANGZHOU, China, March 11, 2024 /PRNewswire/ -- Nano Labs Ltd (Nasdaq: NA) ("we," the "Company" or "Nano Labs"), a leading fabless integrated circuit design company and product solution provider in China, today announced that it will report its unaudited financial results for the six months ended December 31, 2023 before the U.S. market opens on Monday, March 18, 2024. The Company will host an earnings conference call to discuss its financial results at 8:30 am U.S. Eastern Time (8:30 pm Beijing Time) on Ma ...

HANGZHOU, China, Jan. 30, 2024 /PRNewswire/ -- Nano Labs Ltd (Nasdaq: NA) ("we," "the Company," or "Nano Labs"), a leading fabless integrated circuit design company and product solution provider in China, announced today the results of the Company's Extraordinary General Meeting ("EGM") held on 10 A.M. on January 25, 2024, Beijing time (9 P.M. on January 24, 2024, U.S. Eastern time). The proposals submitted for shareholder approval at the EGM have been approved. Specifically, the shareholders have passed re ...

Exhibit 99.1 The accompanying notes are an integral part of these unaudited consolidated financial statements NANO LABS LTD CONSOLIDATED BALANCE SHEETS (Unaudited) | --- | --- | --- | --- | |------------------------------------------------|-------------|-------------|------------| | ASSETS \nCurrent assets: | | | | | Cash and cash equivalents | 87,811,272 | 16,839,750 | 2,330,503 | | Restricted cash | 48,112 | 417,565 | 57,788 | | Accounts receivable | - | 1,484,548 | 205,451 | | Inventories, net | 102,201, ...

Nano Labs Ltd (NASDAQ:NA) Q2 2023 Results Conference Call August 15, 2023 8:00 AM ET Company Participants Jianping Kong - Chairman and CEO Bing Chen - CFO Operator Ladies and gentlemen, thank you for standing by. Welcome to Nano Labs First Half of 2023 Earnings Conference Call. [Operator Instructions] This conference is being recorded today, Tuesday, August 15, 2023. Joining us today from Nano Labs are the company's Chairman and Chief Executive Officer; Mr. Jianping Kong; and the company's Chief Financial O ...

Cryptocurrency Market Risks - The company recorded an inventory write-down of RMB26.8 million and RMB184.1 million (US$26.4 million) in 2021 and 2022 respectively due to the decrease in the market price of cryptocurrency[22]. - The company expects its results of operations to be significantly and negatively impacted by the sharp price decrease of cryptocurrencies including Bitcoin, ETHW, ETHF, ETC, Grin, and Filecoin[21]. - The company may need to offer price concessions to customers if the prices of cryptocurrencies drop significantly, which could adversely affect revenues and results of operations[23]. - The company faces risks related to the volatility of the cryptocurrency market, which can impact the expected economic returns from mining activities[21]. - The company has significant revenue contribution from its cryptocurrency mining machines, making it vulnerable to market fluctuations[21]. - The company has experienced significant fluctuations in cryptocurrency prices, which have historically impacted its revenue streams[21]. - The company faces risks if the market for Bitcoin, ETHW, ETHF, ETC, or Grin diminishes significantly, which could lead to a loss of sales and customers[24]. - The cryptocurrency market's rapid evolution means any adverse developments could significantly affect market demand for mining activities and related solutions[30]. - Blockchain mining activities are energy-intensive, and any increase in electricity costs or shortages could negatively impact the sales of HTC and HPC solutions[152]. - The transition to transaction fees as a primary income source for miners could lead to decreased expected economic returns and demand for mining solutions[133]. - Regulatory changes could require the company or its customers to alter or cease mining operations, potentially incurring significant costs and inefficiencies[125]. Financial Performance - The company recorded a net loss of RMB37.7 million and RMB174.9 million in 2020 and 2021, respectively, but achieved a net income of RMB31.1 million (US$4.5 million) in 2022[59]. - Total revenue increased from RMB2.1 million in 2020 to RMB983.2 million (US$141.2 million) in 2022, indicating significant growth[61]. - The company experienced negative cash flows from operating activities of RMB3.0 million and RMB274.9 million (US$39.5 million) in 2020 and 2022, respectively, while generating cash flows of RMB71.7 million in 2021[63]. - The company has a credit line of up to RMB100 million (US$14.4 million) from a commercial bank, secured by a mortgage on a parcel of land[63]. - The company incurred accounts payable of RMB15.3 million (US$2.2 million) as of December 31, 2022, indicating ongoing financial obligations[64]. - The company may require additional cash resources for future growth and expansion, which could lead to seeking new financing options[64]. Customer and Market Concentration - The company relies heavily on the sales of its HTC and HPC solutions, and any significant decline in the market for these solutions could materially affect its financial condition[23]. - In 2022, sales of HTC and HPC solutions accounted for 93.6% of total revenues, with advance from customers at RMB124.5 million (US$17.9 million) as of December 31, 2022[24]. - The company generated approximately 47.0%, 59.0%, and 9.6% of total revenues from its largest customer in 2020, 2021, and 2022, respectively, and approximately 94.0%, 85.0%, and 38.0% from the top five largest customers during the same years[75]. - The company is exposed to risks related to high customer concentration, which could affect its financial stability[14]. Regulatory and Compliance Risks - The company must navigate ongoing regulatory changes in China that may impact its operations and market access[16]. - The company is subject to uncertainties in its research and development activities, which may affect its ability to innovate and maintain product relevance[20]. - The company may face challenges in maintaining or enhancing brand recognition, which is crucial for competitive differentiation[58]. - The company is subject to potential administrative penalties or criminal investigations if it violates export restrictions or data security regulations in China[119]. - The PRC Cybersecurity Law imposes stringent requirements on data processing operators, which could lead to regulatory reviews affecting the company's operations and capital raising activities[155]. - The current regulatory environment in foreign markets, including the United States, could have a material adverse impact on the company's blockchain products business[122]. - Regulatory changes in China regarding cryptocurrencies and blockchain may severely restrict the company's ability to expand its customer base[118]. - Recent regulatory changes in China require domestic companies to fulfill filing procedures with the CSRC for overseas securities offerings[172]. Operational Challenges - The company faces risks related to the volatility of the cryptocurrency market, which can impact the expected economic returns from mining activities[21]. - Shortages in components or rises in prices may adversely affect production and fulfillment of orders, impacting customer relationships and profitability[43]. - The production of IC products may require advanced fabrication technologies, and third-party foundries may not have sufficient capacity to meet requirements, impacting product shipment[38]. - The tape-out process is critical, and failures can significantly increase costs and delay product launches, negatively impacting profitability[45]. - The company relies on third-party foundries for IC production, and any failure to obtain sufficient capacity could delay product shipments[35]. - The ongoing COVID-19 pandemic has caused significant disruptions, affecting supply chains and production capacity, which may materially impact the company's financial condition[72]. - The company faces difficulties in recruiting and retaining key personnel, which could significantly impact operations and growth[87]. Geopolitical and Economic Factors - Geopolitical risks may negatively impact the company's international expansion and the ability of production partners to fulfill contractual obligations[105]. - The ongoing conflict in Ukraine and geopolitical tensions could lead to market disruptions and affect the company's financial condition and results of operations[107][108]. - The Chinese economy has experienced uneven growth, and any adverse changes could materially affect the company's business and results[167]. - Substantially all revenues are derived from sales in China in 2022[118]. - The PRC government has significant influence over companies with China-based operations, which could materially increase compliance costs and change the industry landscape[159]. Intellectual Property and Competition - The company relies on intellectual property rights, including patents and software copyrights, which may be difficult to enforce, potentially leading to adverse price competition and reduced profit margins[92]. - Intense competition in the fabless IC design industry may require the company to lower prices or increase expenses, negatively impacting profitability[151]. - The fabless IC design market is rapidly evolving, and the company may struggle to forecast future revenue due to its limited operating history[61]. Risks Related to Shareholder Interests - The dual-class structure of the company's ordinary shares may adversely affect the trading market for its ADSs, potentially leading to exclusion from indices and negative commentary from shareholder advisory firms[206]. - The company is classified as a "controlled company" under Nasdaq rules, allowing it to rely on exemptions from certain corporate governance requirements, which may limit shareholder protections[208]. - The company's memorandum and articles of association contain anti-takeover provisions that could adversely affect the rights of Class A ordinary shares and ADS holders[209]. - The company may face difficulties in protecting shareholder interests due to its incorporation under Cayman Islands law and operations primarily in emerging markets[211].

Nano Labs Ltd (NASDAQ:NA) Q4 2022 Earnings Conference Call March 14, 2023 8:30 AM ET Company Participants Jianping Kong - Chairman and CEO Bing Chen - CFO Operator Ladies and gentlemen, thank you for standing by. Welcome to the Nano Labs Fourth Quarter of 2022 Earnings Conference Call. [Operator Instructions] This conference is being recorded today, Tuesday, March 14, 2023. Joining us today from Nano Labs are the company's Chairman and Chief Executive Officer, Mr. Jianping Kong; and the company's Chief Fin ...