Nano(US:NA)2024-03-18 16:56Financial Data and Key Metrics Changes - Net revenue for the second half of 2023 was RMB26.1 million (USD3.7 million), a significant decrease from RMB603 million in the same period of 2022, primarily due to a drop in sales volume of iPollo V1 Series and B1 Series [8] - Cost of revenues decreased to RMB66.6 million (USD9.4 million) from RMB549.2 million in the same period of 2022 [8] - Loss from operations was RMB124.4 million (USD17.6 million) for the second half of 2023, compared to a loss of RMB86.9 million in the same period of 2022 [11] - Net loss was RMB120 million (USD16.9 million) for the second half of 2023, compared to RMB80.3 million in the same period of 2022 [11] - Basic and diluted loss per share was RMB1.91 (USD0.27) for the second half of 2023, compared to RMB1.47 for the same period of 2022 [11] Business Line Data and Key Metrics Changes - Revenue from 3D printing products was RMB787,000 for the second half of 2023, compared to nil for the same period of 2022, indicating a new revenue stream [8] - Operating expenses decreased to RMB83.8 million (USD11.8 million) from RMB140.7 million in the same period of 2022, with selling and marketing expenses decreasing to RMB5.8 million (USD0.8 million) from RMB14.3 million [9] Market Data and Key Metrics Changes - The company noted a gradual recovery in the market during the second half of 2023, supported by government policies and positive market trends [5] Company Strategy and Development Direction - The company is focusing on global market expansion and enhancing its product offerings, particularly in the Web3.0 industry [5] - Significant advancements in R&D for the Cuckoo series integrated products are expected to lead to enhanced product launches in 2024 [5] - The company is also upgrading packaging technology and exploring AI computing and ZK computing chips to seize emerging market opportunities [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing the anticipated increase in sales for V Series and B Series products in 2024, along with strong trends in new product lines like 3D printing [15] - The management acknowledged that the positive market trends had not yet translated into sales during the second half of 2023, but they expect new products to drive growth moving forward [14] Other Important Information - As of December 21, 2023, cash and cash equivalents were RMB48.2 million (USD6.8 million), down from RMB87.8 million as of December 31, 2022 [11] Q&A Session Summary Question: Reason behind underperformed trade value and stock price - The company prioritized developing core value and product quality, believing that focusing on these areas will lead to explosive growth in the future as the Web3.0 industry develops [13] Question: Reasons for decline in performance in the second half of 2023 - The market dynamics took time to translate into customer demand, and while new products showed strong trends, they did not significantly contribute to the second half performance as they were launched late [14] Question: Expectations for market and financial performance in 2024 - The company anticipates an increase in sales for both V Series and B Series products in 2024, with strong performance expected from new product lines like 3D printing [15] Question: Initiatives to promote brand globally - The management team has engaged in discussions with local industry experts and potential partners in various countries, and they participate in global exhibitions to promote their products [16] Question: Considerations behind the agreement with shareholders to convert loans into ordinary shares - Major shareholders expressed confidence in the future of the company and the industry, leading to their willingness to convert loans into equity, which is seen as a strong message of assurance for future development [17]