NaaS Technology (NAAS) Q2 2024 earnings summary

Executive summary

• Achieved first positive non-IFRS net profit in June 2024, with significant progress toward sustained profitability in Q3 and Q4 2024.

• Revenue grew 89% year-over-year in Q2 2024, driven by strong charging services and energy solutions.

• Focused on strengthening core business, reducing costs, and enhancing management efficiency.

• Strategic partnerships with major automotive brands and energy groups expanded ecosystem and technology capabilities.

• Recognized for ESG leadership, included in S&P Global Sustainability Yearbook (China Edition).

Financial highlights

• Q2 2024 revenue rose 89% year-over-year to RMB 91.7 million ($12.6M), with all business segments contributing.

• Q2 2024 gross profit: RMB 30.5 million ($4.2M), up 59% year-over-year; gross margin reached 33%.

• Q2 2024 net loss: RMB 135.5 million ($18.6M), a 59% reduction year-over-year; non-IFRS net loss: RMB 39.9 million ($5.5M), down 63%.

• Net loss margin at lowest historical level; non-IFRS net profit achieved in June 2024.

• Net cash from operating activities in Q2 2024: RMB 13.1 million ($1.8M), compared to net cash used of RMB 56.2 million in Q2 2023.

Outlook and guidance

• Targeting continued profitability in the second half of 2024, leveraging operational efficiencies and expanding partnerships.

• Expecting further gross profit margin improvement as business scales.

• Ongoing expansion of AI-powered services and charging infrastructure, with plans to deploy 1,000 chargers in Q3.

• Focus remains on technological innovation in intelligent and autonomous charging solutions.