Nano Labs (NA) H1 2024 earnings summary

Executive summary

• Industry recovery and new market opportunities observed in H1 2024, with substantial investments in R&D for upgraded Cuckoo series chips and expansion into AI, ZK computing, and metaverse services.

• Mass production of the Cuckoo 3.0 chip began in May 2024, offering significant performance improvements and global leadership in its segment.

• Net revenue for H1 2024 was RMB 24.74 million ($3.47 million), down from RMB 52.27 million year-over-year, mainly due to lower iPollo V1 Series sales.

• Net loss narrowed to RMB 59.15 million ($8.3 million) from RMB 134.3 million year-over-year.

• Strategic collaborations and ongoing investments in R&D are expected to drive future growth.

Financial highlights

• Operating revenue for H1 2024 was RMB 24.74 million ($3.47 million), down 52.7% year-over-year, mainly due to lower iPollo V1 sales.

• Gross profit turned positive at RMB 30.1 thousand ($4.2 thousand) versus a gross loss of RMB 62.9 million in H1 2023.

• Operating loss narrowed to RMB 58.69 million ($8.24 million) from RMB 136.4 million year-over-year.

• 3D printing product revenue surged to RMB 459,200 from RMB 22,000 year-over-year.

• Cash and cash equivalents as of June 30, 2024, were RMB 23.51 million ($3.3 million), down from RMB 48.6 million at year-end 2023.

Outlook and guidance

• Launch of complete machines with Cuckoo 3.0 chips in H2 2024 and H1 2025 is expected to drive V Series sales and overall revenue.

• Gradual introduction of new product lines and expansion into AI computing and metaverse services anticipated to support future growth.

• Management remains confident in the business strategy and long-term value creation.

• iPollo Metaverse's photograph studio service seen as a future growth driver.