Nano Labs (NA) Registration Filing summary

Company overview and business model

• Leading fabless IC design and product solution provider focused on HTC chips, HPC chips, distributed computing, smart-NICs, and vision computing chips.

• Operates primarily through subsidiaries in China and Hong Kong, with a holding company structure in the Cayman Islands.

• Product portfolio includes proprietary Cuckoo series chips, Darkbird HPC chips, iPollo mining machines, and Darksteel distributed computing/storage solutions.

• Revenue primarily from sales of HTC and HPC solutions for cryptocurrency mining, with growing focus on overseas markets.

• Utilizes a fabless model, outsourcing IC fabrication and assembly to third-party partners.

Financial performance and metrics

• Net revenues: RMB39.4M (2021), RMB983.2M (2022), RMB78.3M (2023); significant drop in 2023 due to market and product factors.

• Net income (loss): RMB(174.9)M (2021), RMB31.1M (2022), RMB(254.4)M (2023); returned to loss in 2023.

• Cash and cash equivalents: RMB48.2M (US$6.8M) as of Dec 31, 2023.

• Operating cash flow: RMB(133.5)M (US$18.8M) in 2023; working capital deficit of RMB117M at year-end.

• Inventory write-downs: RMB184.1M (2022), RMB60.8M (2023) due to cryptocurrency price declines.

Use of proceeds and capital allocation

• Up to US$8.2M may be received from warrant exercises, intended for general corporate purposes.

• No proceeds from share resale by selling shareholders; company only receives funds if warrants are exercised.

• No current plans to pay cash dividends; funds retained for business operations and expansion.