Earnings call transcript Q2 2023

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the NaaS Second Quarter and First Half 2023 Earnings Conference Call. At this time all participants are in listen-only mode. I must advice you that this conference is being recorded.

I would now like to turn the conference over to your speaker today, Ms. Cynthia Tan, Senior IR Director. you. Thank ahead. go Please

Cynthia Tan

Hello, Half welcome The XXXX earlier posted were operator. Quarter company's NaaS and issued online. are and First Earnings today everyone, you, to and Second results Thank Conference Call.

today call Officer; Financial Executive Alex Officer. the on Mr. me are Cathy our and and Wang President our Ms. Wu, Chief Yang, Chief Joining

our For Ms. provide will performance Wang today's financial operating recent Wu and and highlights, Mr. an and results. agenda, will overview discuss of our

statement refer comparable we certain Before this earnings to reconciliation statements. you in we to non-IFRS Harbor to as the discussion non-IFRS to release, Safe call Also, measures. I refer a Please will of measures our applies which of IFRS continue, measures. call includes that press release, our earnings contains forward-looking most financial please this note make which

that Finally, otherwise this figures conference terms. mentioned are all during stated, in RMB please call note unless

over Yang. ahead. CEO, turn I our Ms. to now Wang Cathy the will go please call Cathy,

Yang Wang

a Wang. discuss our Okay. XXXX our to and everyone. our It's view earnings development. results CEO, quarter share to I'm recent second Hello, pleasure with my NaaS Cathy

and still In as significant our station we as quarter of leverage deliver reduction. well upgrades stage construction, to operating loss owners financial in improving of expansion, client second various performance base revenue continued and across margin continued network and Such with operating station operation the solid XXXX, a of efficiency. charging

Capital With attracted deepen services. expand. Estate to also leading such solutions CR strategic Our PICC continued innovative and to Motor MGMT and Real as enterprises, partnerships Investment and our one-stop Hyundai Group,

charging of further to partners industry. these development with collaborating about expected are EV We propel

seeking newly the XX-year half the year first exceeded gigawatt of installations to gigawatts, broad-based This capacity past exponential year, experienced in in storage operation new XX.X growth. commissioned hours. installation to X.XX the According alone reach this to total energy NEA, facilities

growing by size XXXX over RMBXXX expected XX with rapidly. demand China's to billion. reaching also It's exceed market the energy storage is gigawatt hours

shows energy and a in companies storage signed in solutions and equipment storage order cooperation RMBXXX million energy with integrated forward innovation charging in order we capability confidence with XXX-megawatt our September storage making several with integrated contracts. station step XXX comprehensive our hours over stations providing further In XXXX, full in over a storage technology, strength to of initiative energy This crucial photovoltaic charging booted year total. This in our energy deliver revenue guidance. and our storage

and acquired Sinopower, total developer initiatives. our strength accelerating year-to-date to ‘XX. million, a our in Furthermore, Kong Internationally, are $XX our on raising XX.XX% rooftop fulfilling stake significantly leading solar growth we August into, fund expansion enhancing we Hong actually energy our financial global in

Amps, of We strength, extended financial definite agreement leading into promoting our and standing while the Charge acquire portfolio exploration service channel service of a on will and capability and capitalizing and product further as also global and the EV a product Charge well their the offerings. we Sinopower strong Amps provider to charging presence service market in entered our European strengthen solutions, regions, respective of

new in integrated the worldwide long quality, elaborate for supporting IoT new demand a aiming smart market system market exploring energy stations, the increasing elevating services and will we while ahead, policies XX% user of development market and in Looking actively the service and asset both charging term. share experience and the operation management global devices energy

look Alex, our you. operating President Now financial a performance. I CFO, our will turn the at closer and and call for over to Thank

Alex Wu

and Hello, joining Cathy. you, today. call everyone, Thank our you for thank

services to performances. operating in solid our of charging and diversified solidify network, In offerings charging leveraging industry. the delivered XXXX, leadership second the financial we while service of offering continued the industry-leading By quarter scale our we

achievements in significant an new highlighted others. integrated becoming our energy by towards storage, We services progress provider, in have journey our also among made transformation energy

more doubled we loss quarter, while than reduction. revenue second a our year-over-year the achieving significant In

Specifically, our station charging across expansion growing client by driven and revenues the ongoing base network million, XXX% to our for RMBXX.X upgrade owner stations. stages our reach construction, year-over-year grew operating and

a This to XX%, innovative XX improvement changes. reached percentage increase margin unwavering notable revenue that commitment quarter-over-quarter. our points representing highlights of business favorable drive gross Our mix practices

Additionally, our reduced year-over-year to RMBXXX.X net by XX% we loss million.

narrowed quarter-over-quarter. margin benefiting loss of net Our margin And greater by XXX% loss our operating by economies from quarter-over-quarter, XXX% narrowed scale.

of year-over-year experienced quarter through chargers volume completed significant the increasing X,XXX XXX% accounted in growth volume for during by hours. same the reaching Our China public with in XX.X% charging total all This gigawatt period. network charging

year-over-year number to XXX% XX.X the Moreover, million RMBX.X orders rose from increase. quarter total gross million by our network reflecting our second XXXX. rose XX.X to through in billion, of transaction a of Simultaneously, the conducted value XXX%

from charging charging revenues by of solutions EV was EV full XXX% attracted first quarter, for upgrades. share off-line a year-over-year, mainly compared increased our driven number with one-stop solutions robust accounting suite second and the EV solutions operation the The In off-line revenues construction, total charging end-to-end growth quarter. cover higher from that increasing revenues station to our of by the of clients

environmentally the of in port we closely with vehicle one-stop Working offer August deeply Group operations the construction. owners On celebrated energy in first we [indiscernible] services. [ph], involved energy XX, we were province, integrated straightforward, efficient of friendly commencement for the which and Energy

partnership and Capital with PICC China expand Resources enhancing PICC, collaboration energy a Motor Real Management we mobility infrastructure, charging and integrated models. With further Hyundai, Group With comprehensive agreements tailored incorporating insurance for we're stations, top-notch Hyundai Limited, online signed Estate PE addition, infrastructure their co-branded new connectivity Investment we services. In roster. our charging to are building and system, service China connectivity strategic

secularization Management, new intelligent energy, Resources everything and operating of construction, incubating of integrated assets the energy and energy within from and digital together innovative low-carbon on development. realm investing and green port into working With energy applications promoting Capital we're new China

the development our boosting full forward confidence revenue PV, to In million executed solid further RMBXXX a propelling integrated RMBXXX few in have million storage charging a excited to target achieving energy in be station upcoming year in addition, RMBXXX signifying our order we're of received storage, to the months, step million. and

energy matching and comprehensive management supervisory We stations integrated by XXX over services. and services complemented storage will XXX outfit development and self-production cabinets systems, charging intelligent with

energy of threefold. benefits storage The is

there With of power the take on off-peak during differentials First, maintaining means storage been can and spreads while energy outrages. operations. of effective ensure revenues advantage value operations to peak integration, from has a lack incremental price charging earn stations price uninterrupted

can conventional solutions. a high-power costly to energy replaced charging increase the upgrades grid with involves Second, accommodate which much effectively load, more base storage fast cost-effective to be approach

energy of million grid Energy grid charging the peak to the local address causing power points storage ensure charging, in cases in potentially effective the challenges collapse. grid In provides safety. an multiple Third, loads. exceed fast X storage to can also managing watts, power solution of could

and market to highlight accomplishments like moment that Moving levers. I'd some to take bolstered our have to our a financial capital strength.

[Technical Difficulty].

Operator

Please conference begin have speaker Ladies temporarily with line. conference and we will this connection gentlemen, the and momentarily. operator, lost the hold the is

Please go Alex. ahead,

Alex Wu

I just Sorry, got disconnected.

Let me continue.

Now let's strategy. into our delve global expansion

acquire Charge an to our August in agreement milestone in globalization marked important levers. Amps Our

We to welcome the Charge brand pleased platform. our are Amps to and team NaaS

Charge charging and integrated reputation in Europe. AC strong As home, a work destination in EV solutions industry, has throughout Amps a Sweden-based charging solutions, specializing pioneer

of international commitment been to its footprint customers portfolio Charge chain throughout For in participation Compact. intelligent, market over has Amps' proven XX is Amps' satisfying broad as its entire pleasing reflected product the an in markets. decade, by Charge UN local sustainability share offerings and sustainable, established a by manifested particularly production XX% user-friendly with Global and

There are significant synergies between Charge Amps. NaaS and

channels. Charge its expand First, NaaS' sales relationship leverage can Amps network to

AC, launch utilize and While affordable existing DC Amps' Charge product to products storage NaaS channels can its to enrich portfolio. household

cost Amps' margins of well its In consolidation. through the reduce chain domestic revenue resource addition, procurement we as supply and advantages Charge in our can improve and as

in critical of is acquired in Hong solar our expanding in June, Hong Kong. we posing Sinopower solar rooftop development a PV largest panel another significant mentioned, service Cathy Kong's component Sinopower global of as market Furthermore, XX% provider, one-stop stake XX.XX% layout. share

the entered opening upstream broadened power charging services, acquisition, the Through distributed boundaries management. Kong, asset chapter from for services our power plant new in a solar to market which Sinopower Hong energy we

markets of both parties. working are the products on capital technology We integrating and

home and as facilities storage Southeast in in sustainability industry. markets, the our and charging the energy Sinopower drive new of to and other European and for solutions Amps Charge will we bases energy global With expansion innovation products services PV our integrating accelerate the Asian and while

Moving quarter financial second to our results.

year-over-year. Our and XXXX. capabilities additional total revenues rapid increase the the XXX% mainly second the The half was and established reached of increased the first result of RMBXX.X EPC up quarter, million business acquired through volumes in order in network our

in total our to due business year-over-year. operating million decreasing expansion. This was costs XX% by were the second RMBXXX.X Our primarily significant quarter,

RMBXXX.X Our attributable of with second the RMBXXX.X for a the period XXXX. same was loss to for ordinary quarter compared XXXX of of shareholders million million [ph] loss net

that range reaffirming RMBXXX situation business our revenues change, of view which year full from preliminary and subject are by market times current X of to guidance are we increasing to our be will on XXXX. Based in million, X the to and RMBXXX conditions, XXXX million our

expanding through asset our provider. energy and solutions, service are global operation integrated energy advancing leading acquisitions, our on management one-stop becoming way to charging well strategic summarize, systems we new To a and

and exploring As solutions avenues expansion providing while propelling for to the ongoing we move energy continuously industry's forward, we new evolution. sustainable committed new remain

for take Thank This to are Operator, concludes prepared today. we ready remarks you. our now questions.

Operator

from Please Instructions] Kelly with first [Operator Zhao question comes [ph] Jefferies. ahead. Your go

Unidentified Analyst

have firstly, Yes, quarter two you I congratulations me? second hear Can the about questions. result.

the -- project? color acquisition, you the your can June of is Firstly, more acquisition discuss of about how the Sinopower after progress in integration share progress and the the please about closed this

this with please growth your you the business? And you question does your secondly, is long-term partnership how the strategic in talk about fit can strategic recently And of developed? more

Alex Wu

Thank you. it. Got

integration. two Sinopower questions, about one is So

strategic by other one. partnership, one The the about address let one So right? me is

I'm excited. Sinopower, So currently for very

acquisition has significant the NaaS' Hong strategically in in of leveraged made Now Sinopower have Kong PV presence to and we in those then, its of June. strengthen two both areas. finished EV and Since strength both Sinopower progress in

Hong Sinopower totaling construction secured has Sinopower for million capacity. currently, watts the X.X milliwatts projects. in generate side, On rooftop It completed a annually. hours in projects solar Kong, X XX project is which expected XX.X XX over kilowatt NaaS also to contracts has million PV under

advancing completion. On aiming X,XXX government-sponsored the side, contractor to scheme has cover Kong projects upon EV EV EHSS around currently subsidy home the Sinopower EHSS, as XX slots over Hong for or parking at a charging qualified

ecosystem, the mass China MG also Mainland which In commercial the expanding has PV in under Vietnam. actively are its currently into PV integrated project addition County, that, construction in Sinopower and in and the in and both to Southeast is industrial involved business Asia. in Sinopower project

So about I'm this acquisition. very excited

first the integration coming and it is will generate and will revenue answer group. And whole as deliver healthy question. very for months healthy now underway. before, projects the very, well of I That's pipeline the my I a for think Sinopower the has that mentioned over EBITDA

question second regarding The the partnership.

excited very with partnerships. in three are We partnerships quarter. are new that we achieved three the There these new

The first EV face where and one tailored to charging is services aim models. our Hyundai's we with Hyundai mobility for infrastructure

biggest and Partnership also services. which system, we towards top-notch PICC, companies building is one co-branded including of and integrated stations the insurance will new infrastructure in work with energy service charging a insurance China,

With markets also looking to at Resource, China by capabilities. which is operate China our fund backed and assets. to able in invest will infrastructure energy expertise and to Resources' that's a Resource we industry potential capital investment new Capital and new an energy securitize incubate We'll China be leverage Management, projects

investor. to see These and we and as These partnerships, in. Thank one with with in one OEM, -- we mind you. a you can the right, together, pillars important spaces major can three partnerships them put in major company will ecosystem. to in working the that are insurance are and need new commercial if estate And that real one partners these build all we energy you more work have developer build work strong ecosystem we have the continue we

Operator

Please next [Operator Will [ph]. Instructions] with comes question Your Tian Leo from go ahead.

Unidentified Analyst

Congratulations for and half in a I quarter have second Will. performance XXXX. is questions. two great this Hi first

charging of Can is station discuss you business? storage. you you Thank on can the much. more These more Europe in market? storage about questions. are question on details your very my share second energy Amps and in acquisition Charge First, the color energy My your strategy

Alex Wu

asking Thanks for you. Thank these questions.

Charge question Amps So acquisition now Amps first the to elaborate do that I strategy on with on is Charge acquisition. the will our

is second energy do right? The to storage, with question

Okay.

Charge EV XXXX, be in Europe. is million will energy vehicle XX market currently with step X.X EV we is the me a world's first the acquisition is EVs The by in So projection market Europe take XXXX. of million there let in be Europe in energy -- XX and The largest question address second strategic your that there Europe. in will first. Amps million XXXX in by

from in European XX% has which the forecasts a in the by XXXX. perspective, And penetration the XXXX, penetration XX% countries, to EU rate countries, reached Union

EV is with highest somewhere rate, on now about and to The spot As XX%. highest XXXX. North following XX% XX% penetration China the that, in EV with have countries Norway the a at in penetration between over comparison Europe Sweden to closely XX% that the two rate just both

we that quality very creating Amps in a has has So experience new Sweden well-developed is design in some acquiring established are of and best and And a in in countries. the of fast-growing Charge holds presence in charging the market. in very a It position certain brand best its a decade products a industry. strong market market,

will are channels growth also we Europe is access access acquisition, exciting to the have channels the because something launch to products DC our objective launch is For AC products access brand energy those leading channels that us have and particularly like through. this new plans The and have charging sales to channels. like and to same storage products PV through to have currently the in products. to enable to products products We

created acquisition. a created for clear also very for plan a this market strategic have our We entry. We've European approach integration

we of opportunities help the have transformation Sweden are to this a from Charge chief system. to be have We to And in to team happen. will there present of acquisition. We're NaaS the be Amps we lot integration take that plan XXX-day potentially excited we a integrated for office the call very into a that small can completed what

we I to potential will establish aiming as and step integrate presence is we step energy take products our and and we before. Amps' brands And is sales mentioned leading Charge first will channels, second offer in PV service with products The solution will at we and integrated transactions comprehensive, we household trading our households together is engaging be which And last and means level, facilitating grouping a grid. the energy in Europe. want energy be step power to

through we are happy achieve That's the that answer strategic finished and are work we our these question. and growth through continue our and organic three development and to our to So the first your step now first steps, now acquisition in very goals. we'll growth

a stations. for charging Energy regarding question charging interesting very market. storage second The and for energy our is storage stations

First XXX,XXX very all, China. big. Today, of charging there market about in the are public is stations

power identified for generate the where about to that over them. the energy stations of to in prices which, are XX,XXX favorable. can We benefit be enough storage Of are XX,XXX we've cities connected peak commercial value commercially

billion opportunities storage, China that of That's translate RMBX roll of to opportunity and If CapEx this, announced and a we we can expect over potentially With of capture targets there for of in just RMBX XXX is of a suitable hours We support X,XXX government storage policies be can contract we going to of can we total growing worth value storage with a the a an would million XXX energy XXX of take. that energy XXXX, charging by in energy X,XXX capacity. number stations, potentially RMBXXX stations we're lot This that to up of would million. take. stations solutions to-date. from billion aggregate

for the I've models largest one and capabilities, important just enhance We our aim about storage you. systems solutions of energy and become talked vast network long the with of charging of charging technology analytics storage to Thank can in the operators are we further energy three intelligent these context. asset stations.

Operator

Thank you.

to are closing the call I'd remarks. questions, no the back now there to company over As further like turn for

Yang Wang

for all joining you today. Thank us

questions, further night. any us. always contact to have free feel you please If Good

Operator

call. conference the concludes This

You you. may Thank your all disconnect now lines.

NaaS Technology (NAAS) 8 Sep 232023 Q2 Earnings call transcript