NaaS(US:NAAS)2023-10-27 03:06Financial Data and Key Metrics Changes - Total revenues increased by 536% year-over-year, reaching RMB 171 million in Q3 2023 [5] - Non-IFRS net margin attributable to ordinary shareholders narrowed by 256 percentage points compared to the same quarter last year [5] - Gross margin improved to 27% from 6% year-over-year, with gross profit increasing 28-fold year-over-year [11] - Net loss attributable to ordinary shareholders was RMB 366.9 million, compared to a loss of RMB 109.1 million for the same period in 2022 [13] - Non-IFRS net loss was RMB 175.7 million for Q3, compared to RMB 96.5 million for the same period in 2022 [13] Business Line Data and Key Metrics Changes - Revenue from Energy Solutions increased by 6x quarter-over-quarter, accounting for 81% of total revenue in Q3 [11] - The proportion of offline and innovation service revenue exceeded 50%, reaching 53.4% in Q3 [6] - Total charging volume increased by 66% year-over-year, reaching 1,383 gigawatt hours [14] Market Data and Key Metrics Changes - NaaS's international business contributed 32.7% of total revenues in Q3, up from 22% in Q2 [7][16] - The company holds approximately 50% market share in China's EV charging network with 73,000 charging stations [30] Company Strategy and Development Direction - NaaS is transitioning from a new energy service company to a leading integrated new energy asset operation and management service provider [9] - The company aims to achieve full-year 2023 revenue guidance of RMB 500 million to RMB 600 million, and expects 2024 revenue to be between RMB 2 billion to RMB 3 billion [6][18] - NaaS is focusing on expanding its charging services and energy solutions while leveraging strategic acquisitions to enhance its global footprint [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2024 revenue guidance, citing strong growth drivers in both domestic and international markets [29][34] - The partnership with China Construction Bank is expected to provide significant financial support, enhancing the company's growth potential [48][50] Other Important Information - NaaS received the highest ESG entity score in China and joined the United Nations Global Compact organization [7] - The company has launched 43 integrated charging stations with energy storage by the end of Q3, covering major cities [15] Q&A Session Summary Question: Growth drivers for Energy Solutions business in China and overseas - Energy Solutions contributed RMB 139 million in Q3, with a year-over-year growth of 500% driven by EPC projects and energy storage solutions [22][24] Question: Margin outlook and improvement - Margin improvement is driven by a favorable revenue mix and operating leverage, with 81% of revenue from Energy Solutions, which has higher margins [26] Question: Achieving significant revenue growth in Q4 - The company expects to maintain revenue momentum with over 300 contracts to be delivered in Q4 and a strong backlog of projects [37] Question: Progress on major Energy Storage contract - The company signed a RMB 200 million contract to build energy storage solutions in 380 charging stations, with 43 already delivered [39][40] Question: Impact of partnership with China Construction Bank - The partnership provides a credit line of up to RMB 2.5 billion, supporting financial stability and accelerating energy transition efforts [48][50]