Release Date: July 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Achieved first positive non-IFRS average net profit in June 2024.
- Revenue increased by 89% year over year to RMB91.7 million in Q2 2024.
- Gross profit grew 59% year over year to RMB30.5 million in Q2 2024.
- Formed strategic partnerships with major automotive industry players, including Geely, Hyundai, and Great Wall Motors.
- Launched nearly 50 chargers in Q2 2024 and on track to bring nearly 1,000 additional chargers online by Q3 2024.
Negative Points
- Net loss margin, although improved, still exists.
- High dependency on the Chinese market, which may pose risks if market conditions change.
- Significant reliance on partnerships with automotive manufacturers for growth.
- Operating expenses, although reduced, remain high relative to revenue.
- Potential challenges in maintaining the rapid growth rate and scaling operations efficiently.
Q & A Highlights
Q: How are you able to meaningfully elevate your margin level and how do you expect a quarterly net profit breakeven going ahead?
A: Alex Wu, President and CFO: We reached a milestone of single-month non-IFRS net profit breakeven in June and positive operational cash flow in Q2 2024. Our revenue increased by 89% year over year, driven by the fast EV penetration in China. Gross profit margin improved to 33%, and we reduced our operating expenses significantly. Our profitable orders now constitute 70% of total orders, up from 41% in Q2 2023.
Q: As NaaS continues to enjoy fast revenue growth and scale-up, can you share more color on your revenue drivers in the next few years?
A: Alex Wu, President and CFO: Our revenue in Q2 2024 grew by 89% year over year. Charging services increased by 73%, and energy solutions grew by 105%. Our AI capabilities in site selection and operations are driving this growth. We are also collaborating with major CPOs to deploy more chargers, which will further boost our revenue.
Q: Can you share more details on the operating metrics, such as the gross take rate and net take rate?
A: Alex Wu, President and CFO: Our gross take rate (GTR) has reached an all-time high due to better operational outcomes for CPOs and increased long-tail CPOs joining our platform. Our net take rate (NTR) has also improved, driven by efficient sales and marketing and an increase in VIP members. Profitable orders now make up 70% of total orders.
Q: How do you see your position in the new autonomous driving era, especially with the rise of RoboTaxi?
A: Alex Wu, President and CFO: We are well-positioned to support RoboTaxi operations with our extensive charging network and AI algorithms. Our autonomous charging robots, equipped with deep learning and 3D vision technologies, are designed to facilitate autonomous charging, making us a key player in the autonomous driving ecosystem.
Q: Can you share updates on your partnerships with EV makers and how these benefit NaaS?
A: Alex Wu, President and CFO: In Q2, we partnered with JI YUE and other major OEMs, embedding our platform into over 150 EV models. These partnerships generate revenue from system setup and subscription fees, enhance brand awareness, and help us acquire new customers. We are also collaborating with government and research institutes to maintain our leadership in the industry.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
