Nano(US:NA)2023-03-17 17:56Financial Data and Key Metrics Changes - Net revenues increased to RMB 12.7 million (USD 1.8 million) for Q4 2022 from RMB 3.2 million for the same period in 2021, primarily due to increased sales volume of iPollo V1 Series and B1 Series products [9] - Cost of revenues significantly increased to RMB 89.3 million (USD 12.8 million) for Q4 2022 from RMB 26.9 million for the same period in 2021, mainly due to inventory write-downs caused by a decline in market expectations [9] - Total operating expenses decreased to RMB 60.3 million (USD 8.7 million) for Q4 2022 from RMB 113 million for the same period in 2021 [10] - Loss from operations was RMB 136.9 million (USD 19.7 million) for Q4 2022 compared to a loss of RMB 136.8 million for the same period in 2021 [12] - Net loss was RMB 132.8 million (USD 19.1 million) for Q4 2022 compared to a net loss of RMB 135.5 million for the same period in 2021 [12] - Basic and diluted loss per ordinary share was RMB 1.19 (USD 0.17) for Q4 2022, compared to RMB 1.32 for the same period in 2021 [12] - Cash and cash equivalents as of December 31, 2022, were RMB 87.8 million (USD 12.6 million), down from RMB 233.9 million as of December 31, 2021 [12] Business Line Data and Key Metrics Changes - Selling and marketing expenses increased to RMB 5.6 million (USD 0.8 million) for Q4 2022 from RMB 3.4 million for the same period in 2021, primarily due to increased advertising expenses [10] - General and administrative expenses increased to RMB 15.5 million (USD 2.2 million) for Q4 2022 from RMB 10 million for the same period in 2021, driven by higher employee salaries and increased equipment and travel fees [10] - Research and development expenses decreased to RMB 39.2 million (USD 5.6 million) for Q4 2022 from RMB 99.6 million for the same period in 2021, mainly due to a decrease in direct materials related to R&D [11] Market Data and Key Metrics Changes - The overall crypto market faced challenges, particularly due to the conversion of Ethereum from proof-of-work to proof-of-stake in September 2022, which impacted the company's business [6][15] Company Strategy and Development Direction - The company is focusing on expanding its market share in overseas markets, particularly in North America, North Europe, the Middle East, and Southeast Asia [6] - The iPollo Metaverse is being developed as a key product, integrating AIGC as an important Layer 2 tool to enhance metaverse experiences [7][8] - Future product development includes Cuckoo3.0 and new A-series iPollo computing devices designed for AI-generated content and zero-knowledge proof [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future development potential despite facing an uncertain market environment [13] - The company expects financial performance in 2023 to improve compared to Q4 2022, driven by new product iterations and enhancements [22] Other Important Information - The company is committed to creating long-term value for shareholders and adapting its development strategy to changing market conditions [13] Q&A Session Summary Question: What has caused the company's financial metrics decline in the fourth quarter? - The decline was attributed to the Ethereum mainnet conversion and a decrease in cryptocurrency prices during the second half of 2022 [15] Question: Do you have expectations for your new products? - The company is developing Cuckoo3.0 and has launched new A-series iPollo computing devices, which are expected to support AI-generated content and enhance metaverse development [17] Question: Could you give a brief introduction of AIGC and ZKP computing, and what is the performance outlook for 2023? - AIGC uses AI technology for content generation, addressing the high demand for digital content in the metaverse. Zero-knowledge proof is an encryption protocol important for blockchain technology. The company expects improved financial performance in 2023 due to product portfolio enhancements [20][21][22] Question: What is the key direction of the company's development in the future? - The company aims to enrich its product portfolio, focusing on AIGC, real-time rendering, ZKP computing, and 3D printing, while also targeting overseas markets [25]