NAAS - Earnings call transcript Q4 2023

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to NaaS Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] I must advise you that this conference is being recorded.I would now like to turn the conference over to your first speaker today, Mr. John Wang, Director of Investor Relations. Thank you. ahead. go Please

John Wang

our that Officer; non-IFRS provide applies discuss forward-looking today's highlights, harbor this Ms. online.Joining and quarter safe Officer.For and includes operator, Wang recent The IFRS the and I to refer are Officer; welcome Wu Mr. results Wang operating are to Wu, call call Thank will Strategy Ms. will overview measures. we as fiscal you hello, Ms. our statements. refer year our call fourth posted and statement certain today financial through and issued contains in call. note which agenda, our will financial measures of release, on of XXXX NaaS continue, please Also, the to performance Financial a Yang, highlights.Before were measures. today Cathy you, Wu which this go the non-IFRS earlier everyone, me make our earnings company's Mr. reconciliation and Alex to Chief Vivienne Chief and our earnings Please an to our and Wu, Chief Executive of results discussions our President comparable release, Ms. we'll most earnings press conference

go Finally, conference our to CEO, please figures call all now note this the that Yang. call over Ms. please unless mentioned are Cathy, will during ahead. otherwise stated, Wang turn in RMB.I Cathy

Wang Yang

while developments. NaaS revenue promoting RMB profit income both increased and and with XXX%, business XXx diversified I'm initiatives you In CEO It's all pleasure increase RMB improving quarter growth strategic a results to recent to year saw reached and XXX full of discuss host full the million. revenue our and our of sustainable year-over-year XX everyone. structure, Hello, gross for earnings fourth Wang. revenue million, A growth. profitability.Total XXXX, our substantial deals to share XXXX my to Cathy year NaaS' of

margin we profit and narrowed gross XX.X% front, Our expanded network. margin full from expanded XXX% non-IFRS steadily charging year-over-year year net operations to by our the X.X% year-over-year.On

nearly profitability.Our year during in Our Meanwhile, strive energy January net number consecutive full hours, same X,XXX February. for China XX.X% by period. services improve of since year-over-year increase, gigawatt to the turning charging volume a total in the increased new and the reached vehicles while in has mobility September take connective continued we X rate XXXX, expand to XXXX months positive risen XX%

XXX a closer to market XXXX, explored the shifting charging will to paths XXXX total steady provider.Going Energy service strong over comprehensive new continue our to we growth maintaining progress newly position from Ms. models we diversify market provider appointed look segment business to CFO, lead an solution diversification. will from Solutions While while us and reached empower Wu, over forward, to revenue The services, million new we propelling RMB turn our to Vivienne further services the results. income streams.Revenues strong profitability, the This foundation energy for it charging XX% for reflects company our will to I a in development.Now improve full our operating exploring in also our revenues. income at built consistently of year for energy in accounting

Vivienne Wu

everyone. hello, AI leveraging and Cathy, we our start of in Thanks, brief are I'd how to with a like overview business.

side, are optimize reduce profitability.On operational to on the core supply depend network the needs driving capabilities we Our advantage costs. performance, and maintenance predict AI AI-powered analytics our

proven becoming propelled the financial fast new assessment infrastructure growth energy various efficiently the spectrum our our global and AI-driven expanded usage AI-driven We full an plant understand new development construction. AI-based capabilities, are accelerate power we achieved AI advantage has patterns institutions Through of for CEO as in-house energy operators and solidified act the share size Chancheng healthy On operations risk development, thereby, with a expanded a energy-related Group asset and funders new areas. intelligent strategic our the optimize chain. in maintenance services quickly propelling stations. the tailored, us control and energy analysis constantly This short, diverse client aggregation.Furthermore, expansion approach and intelligence in helps other and artificial refined income also a of we can services of charging our models structure. innovator have and charging announced resources. diversify grid have between advance addition pricing In our entire regional adjustments, offer empower virtual address leveraging to asset operations XXXX, mentioned, position early deploy side, growth, in we selection comprehensive new profitability. for as with market to energy solutions.In and entire spans site for such digital collaboration our a We and provider for can of new Foshan energy we our areas industry technology, solutions, of as sector.As progress range effective and a chain.Our we In the to Construction City we the industry cultivating to broad partnership balance

milestone fields swapping [ marked provincial we Service Supervision China integrated network, in in energy charging user Zhejiang our I CFO, vehicle and our energy and and user ], battery Energy and me (sic) another it terms construction sector, in the project the with partnership, GAC channels.Before charging a Charging promote new of on our enhance Platform February, and services over United Engineering energy Project our Automotive Third efficiency Governance in storage, infrastructure Platform and shared the to We energy for we Zhejiang's the ESG where with cooperated share supplier won Zhejiang Environment have NaaS Service ESG Wall we Bureau jointly deeply for contributing in to combining This Project Supervision invited solar global Province Governance NaaS Nations Xth charging panel, new Assembly, award Motors, update new successful the Infrastructure month, energy Construction elements. overarching digital charging participate enhancing also Deepal following of partnered expertise to sustainability. province becoming Zhejiang broaden to new green significant Dealers, committed Construction government let development.Furthermore, the construction efforts. Energy the network of to Construction innovations in we transportation automaker hand infrastructure.This expand Great goal with in Also, is an energy. experience and and were to energy acquisition and of

energy a climate change demonstration commitment we rating governance.Additionally, received Center, transformation Environmental as stand solutions China's rating. certification global of Research recently environmental a the Our powerful average and the B-level surpassing C-level Global global from to transportation Information

the financials. to development that, will green carbon As give pursuit always, deeper of I and dive the floor to into we a neutrality.With for dedicated global Alex, our our remain CFO,

Alex Wu

of data-driven This since uptick sophisticated the charging connectivity in of XXX% I the mobility stems by and business, review growth XX.X results total fourth of Vivienne. result to year-over-year impressive in recorded with transaction. million. is will the start growth our of Thanks, quarter total terms This the a we In revenue proportion our pricing our from XXXX. robust the September profitable both XXXX, strategy. our for volume predominantly has mainly RMB the substantial which quarter, of total increased orders consistently month-over-month fourth growth

high a due our in high our core XXX% including year in grew an Energy and delivery and RMB energy comprehensive each sector.As year-over-year leader metrics, performances Additionally, as renewable revenue energy XXX% evolved all-time Cathy Solutions at our the all-time growth position management our storage energy energy business to million. ongoing was digitalization financial of mentioned, NaaS. of XXX.X With the solutions.Looking largely drove year, for year, for record-breaking full increased annual solidifying revenue year-over-year we our full XXXX an generation, solutions, astounding of to the transformative by strategically, a

by RMB our business network, increasing to X,XXX Our tremendous reflects for increased rose which We XX% services. XX% key which gross by demand transaction the X and our through metrics: advancements volumes charging scalability growth volume, NaaS X.X transacted and the gigawatt new made our the central of ecosystem the significant expansion orders, directly driving the these energy our across by to model metrics XXX.X hours; of of contributes to numbers second.Each equivalent billion; to NaaS industry's per X.X and surged in growth. revenue role highlights to through of XX% RMB the orders which million, network

XXXX. profit primary to Our in from and efficiency clear on refining been X.X XX-fold our XXXX. margin goals RMB ambitious this gross drove across gross our way, XXXX operational million focus one.In segments, business our has XX.X% XX.X RMB million X.X% XXXX in to from in year our full setting up each we also This increased for in core

mainly smaller was of narrowed However, that greater by operational operating fixed our we're take improvement increased leverage services, charging efficiency. advancing The due in the in shows we more and are in portion growing margin non-IFRS our profitability momentum profit where accounting costs XXX%. to with margin base.Positive rate our for gross net a revenue gaining with our our net

September consistent rate marking rate, a in XXXX.Similarly, month a first XX.XX% the our since approach. which seen effectiveness February, in upward of January profitability positive progressive both turned the NTR GTR fundamentals. XX% of demonstrates take positive take the With net underscores and transaction notable February, remains operational growth to in the improving we've growth NTR operations, high-quality strong for in and in in Our underscoring gross in focus forge our with of time our strategic on NTR trend XXXX, stickiness.Our the under as we X.XX% refined consecutive a improved ahead customer volume further this and year-over-year strategy our increase fourth climb quarter, improving Xth

yielding at asset us level new towards and enhance XXXX.In reach EBIT global Our streamline leadership end trajectory firmly efficiency placing initiatives the operational path on of in monthly the summary, energy tangible on results, NaaS a to is breakeven strong are by processes the management. to

new is now questions. efficiency, we our revenue growth remarks growth and journey Thank in for Operator, you. ready marked take advancement both Our to driving the and strong concludes are today. operational energy domain.This prepared our sustained enhanced by

Operator

comes first Our Instructions] Jefferies. Zou from [Operator question from Kelly

Min Zou

from X today. questions This Jefferies. is Kelly Zou have I

in to what margin like your strategic focus would about And XXXX. second I outlook. the ask Firstly, is about

is X drivers your what today? next margin of with on charging key X me years the view sustainability margin your in and the if basically, expansion, to share business can So service the you expansion

Vivienne Wu

and the margin of service losses question. been our in these majority have our network. improvement We're from remain charging in and to margin business. attributed And ability breakeven. early-stage first leading We're position subsidies happy aim firstly, your deliver be XXXX, preserving strategy.And to the our results confident and profit our our user enhancement, prioritize to to the historically, our long-term in we'll committed perspective to answer achieve of platform I'd in

constant. relatively We to turn see positive the NTR are remain Meanwhile, XXXX. our in expenses encouraged overhead

So on metrics. are consequently, by maintained XXXX.And market expansion growth on across trajectory secondly, end achieve profitability we track of our the robust we side, all to have the major a of

together and XXX their engage channels. and leverage operational Moreover, expansive service stability is conclusion, are efficiency technological branding see Our system Alex efficiency.As our NaaS is throughout to going monetize our bring in we of personnel deployed capabilities, acquisition are strong shift successfully station continue to the to will in organically the CPOs.Furthermore, next, platform, energy and we all paradigm we over energy asset digital is CPOs global analytic to on question. strength fast-growing infrastructure users with business, our an of operator charging transition.And a contribute through strategically China stakeholders our build of channels.In you becoming out answer our leading the user strength transportation can I our energy technological charging to business impressive of our ground users dedicated grand and improving highlighting enhancing to XX% efforts diverse expanding capabilities their network. we in acquired, second believe, energy in and empower With the your our once the our force and

Alex Wu

China best users. the enable connect the very unique on with charging right? X cases capabilities, In people this that EV.A that, margin cities. will CPOs with first, they and me early look leverage both have in capabilities. and connect to answer efficient number road pricing.We EV to what a large are in than than both as our Yes, insights margin. the also We're market, And next cities means CPOs. X,XXX of are regarding question and which will very like third-party the AI-based analytics in have the the more growth of charging at CAGR to our BD major to will a perspective, one and growth sustain than market it's local drive XXx leading post volume call know, a the report digital dynamic than position. promising charging, as understand strong about years, by we all only the connect a market of a infrastructure investment on technology the market, the more XXXX. the And grow X% some penetration is private Number less Kelly, public in by which that also to let's in charging.We vehicles We the X we local more a in grow And charging hands will of China.NaaS, continue requires of at we XX% your dominate stage XXX improvement. at X people From real-time million is have holding of XXXX we let more terms These suggests year-end. in we growth team that to China use very and

this great be is largest we XX%, replicate, the and I that business, a thing holistic are of and underlying our position margin this a profit confidence to currently drivers and sustained.The of can business, together.So expand to As in key of leading which part is will market market, continue offering the growth gross our north that be The services capabilities high. right? bring for margin, the hyper-growing network, difficult have with station same unique super a enjoying owners connectivity can EV said

mentioned Vivienne we why set has along explains consecutive That the will release, our priorities NTR.Given overhead, what likely steady cover improve echo months, an the to growth expenses EBIT gross breakeven, lifted earnings as reach and Our been a expanded mentioned. our X in to in controlled we and margin gradually NTR, just margin. and with profit

Operator

comes Sum from the Goldman line from next ] Peggy [ Our question of Sachs.

Unknown Analyst

have X So I questions.

net the cost and The question second you profit the user share details breakeven will first my line more is year the just this from is, perspective?So -- more mentioned overall you the on about growth. by will Could you how the company reach on year-end. improve bottom the control profitability

on year, a this so reduced Given GMV share you how able user subsidies have to you are you the lot online acquisition color and can achieve growth? more

Alex Wu

controlled.So can monthly GMV things the together, regarding probably Well, XXXX. we January a and a of end the I will [ monthly stable goal. take reach one, historically, stable first EBIT gross with from things very Solutions part service, question, business, rest The are and that with confident our breakeven.Number for would localized online clear positive, gross is couple you say. charging confident Your the profitability well able and look if at subsidies of as by to Energy gross to China our able There service for step with to be end your we to profit the and and are users, of of business. question stable profitable. we to and XXXX.So second was existing EBIT of lot transaction have maintaining this a let's are a be charging our scale our maintain as especially regarding a I managed a market we'll and from Beside these to improve manage loss at both at cities the couple drivers overhead that sustain profit use backend stage the as acquisition to XXXX.Meanwhile, goal ], to due growth result, gross our of continue scaled business subsidies, different breakeven, And more will of and a like breakeven we with breakeven user sign profit on the achieve by Tin profit becomes the back of NTR margin how quite up level charging business overhead charging the that main up margin. for I'm of put this will of a we start. lines our we level in to country Since a -- for the the in hence, is reduced the early again. XXXX, service a big tiers. market. a year, EV NTR business contribute continued is know, have that

So charging the acquire reduce both natural increase is space. the balanced traffic ownership the each and and subsidies. city in profitability and through chain the different.Our the the is demand, cost EV more for of and experience supply the local that to value a us higher of of and higher the for further users need will CPOs whole gradually yield The profitability

a that's our the view operation. is market.Secondly from view the for So

have of We acquire our leverage market a and give efficiently. know-hows been to couple making more you maintain examples. I'll to efforts users

a For needs types can of vehicle commercial platform by AI car our in also private efficiency example, and the specified that real-time membership we owners, charging technology users, so deployed system taxi improve multi-tier to have CPOs further have meet more billing on.We such leveraged for optimizing operators. our drivers the price our drivers, those as for of different

It's one XX% overlap of EV parent the our and thing the in strong X existing third I our in worth is numbers markets, example, in group The mention are XX% advantage revenue, fueling GMV. improving Newlinks our growth to even with that company, year-over-year NaaS orders XX% mover in say subsidies. parent charging our the industry, between business.The Our growth including with user to be reduce want achieve recognized achieved ecosystem. an mentioned, fast-growing including our I points to that users growth we we and in on efficiency, by including subsidies.For gas us.So online with all points in as NaaS just transaction suggests is numbers serves charging charging these XXX% These effort growth early we I will a for acquisition GMV XX%-year-over-year ecosystem, operational user believe when volume, that stickiness charging users service fast app. we while year-over-year a the able big user in operating and synergy reducing growth the as summary, Group's

Operator

from Wei UBS. Next line of comes the Shen from question

Wei Shen

And benefit a see NaaS these such Deepal, do OEMs China's mentioned Great partnership on such You in has partnership? as agreement signed the you What will with GAC and monetize that partnerships? Wall. EV you how

Wang Yang

mobile have we good enjoying OEMs OEMs Wall, charges into assist a diverse. we application.And of enabling their partnership provide and et strong China, service develop XX% furthermore, they many question. between EVs, are charging support. And the we provide with the collaboration Deepal, to and additionally, infotainment cetera. Certainly, to The branded their EV Great platform with EV-charging Li the GAC, user currently, And to extensive A OEMs our own for systems. from connected in established traffic NIO, OEMs user our is support over them Arcfox their very including and Auto Auto, XPeng, EV in need us services exceptional integrating owned by EV and OEMs

CPOs, partnership EV us And are charging through into the new our markets. European the for chargers collaboration markets.So with gives this Lastly, many advantages OEM Asian Southeast acquisition. certainly, are in facilitating user overseas important expansion our we and EV

autonomous we our customers. efficient energy superior their intelligent the traffic in monetize that we And such be to services partnerships the and our the digital and EV smart operation charging delivering new a with could and strong owners will leverage assets, in transportation, will offer comprehensive able models the more behavior stickiness Service underlying a of we Energy information will become world we're models, assisting EV of these secondly, our thereby enrich we EV-charging a OEM and driving. OEMs, confident partners energy and and EV automatically have Charging As the enable existing own provide.And valued optimize through in channels always the to users Business.Ultimately, new to build to as business these can improve use our service Solutions up of that era the partnership experience our service in delivery analytic

Operator

next Our Macquarie the question Haier of Eugene from line from comes Capital.

Eugene Haier

seeing you end the on Can lower More any level charging? market? user in update specifically, competition are provide current EV the incentives used of being any you for

Alex Wu

answer at right? different of get holistic this again views I are I would different the couple they are a a -- previous and elaborate a question think market, bit people to view missed to sometimes the market that people in sometimes to more. like angles probably that point like once localized a little my see in answers. market.First, just that mentioned Because there of help let's I look just I would in market is

NTR to seen a whole turning as achieved first that NTR economically X penetration the Let's area, we China. that a look the positive in will developing market The to have gradually obviously, this city. those trend is is in in batch of have achieve where achieved the is now advanced -- generally later overall, we coastal developed in a first continues right? What as cities Shanghai.So higher at -- China larger over as city NTR, EV tier we we've the we such positive.So a our regions increase, in NTR positive

already a witnessed we've generally trend. as So this

very we've is fragmented is of CPOs the noticed localized which So a and getting the side, quickly, what market suggests market supply increasing number that's is that perspective.From from scattered. a very much very,

system increase. Our which we that are XXX% connected CPOs, to XXXX, by indicates X,XXX year-end year-over-year is a

that a for fee So operators and EUR other a supply to hyper somewhere mature, growth the kilowatt difference indicates a more third there charging I a a a the side market angles as can that becomes X.XX X market. help very higher hyper developed seen norm.So growth getting and market between market, provide as data across that profitability phase. just hour, value example, If these an EUR Once the aspect, better. X is take market take X,XXX-plus developed reach that between the EV that can So from people to understand give chain.So the can can obviously Europe that or are we market I the there across fast-growing service per right? little I more is achieved a in indication think scattered.The the China is China, is a a opportunity point still that's bit be good -- is as

Operator

come of will Yiran the question from from line next Liu HSBC. Our

Yiran Liu

As mentioned would Vivienne your be I global just that details NaaS will very a to is expansion overseas what be So ask like helpful. May plan? some provider.

Vivienne Wu

firstly, in China EV-charging like And of being meantime, largest the of efforts. market penetration that in and capabilities public implies technological plans. top markets. would approximately expansion to our is high we to charging say, remains are user business growing and like favor density increase fastest a CAGR underlying and confident And other continue over core research given certainly, the can I our the the the behavior, traffic at priority the This next XX size market between our But independent business EV the for transferable XXXX charging of X this expansion XXXX. EV years.So be our believe we in growing popularity growth change XX% and volume predicts will EV, fast our that to

our platform the platform one from to analytics us managing charging derived support markets. one of valuable a globally.The largest largest of algorithm for digital networks the EV is driver enter EV stations into the will be asset of user new Our and

you. our Asian leading penetrate with stakeholder and with first, X in charging into overseas OEMs to expansion, aspects overseas And to we're markets services European Southeast network forward EV Chinese we move share and excited are in I'm actively key them global different collaborating markets.And provide help to markets. and as with engaging So we

services European and with their certificate drivers the we're CE non-branded energy and panel, collaborating also obtained in our overseas systems. storage markets.And into solar global capabilities mature lastly, AC developing we developed charging to have advanced energy these our in are January, solutions, CPOs in provide as such And EV are integrating countries chargers.And also DC furthermore, helping infrastructure with and to the upgrade We to systems infotainment chargers markets. energy our secondly,

opens are us is to unique markets up expand we market solid technological laying Our for to a our will and the in infrastructure focus in where to our summary, that ourselves global investment.So firmly into future cutting-edge hardware for both technologies strength opportunities key we new partners the EV in overseas markets. bring believe benefit and expand foundation

Operator

from comes from The Ethan next Zhang Nomura. question

Ethan Zhang

So Energy Energy noticed visibility business. you there wonder this could I Solutions is -- trajectory business? and the I more management fluctuations my for Solutions growth in us were regarding into some whether the revenue if and the question give of QX QX

Alex Wu

a Energy business. peak usually New seasonality, low Chinese project-based It summer Solutions before and -- a really is especially business which and around Year, fall. will Our has immediately is winter in in spring, and

capabilities have and a achieved considered, Solutions industry. one capability core our we projects can is core the built. We is to and and by year-over-year unique difficult such lies growth is X.Xx forecast partners significant in year-over-year traffic impressed digital station natural we the accurate pricing replicate.With more with to seasonality win, seasonality applies capability, our some business.With major the recognized though, yet the the analytics business. So on as a in all believe think I be the a partnerships one, are basis, it Energy the client to pretty much being that by the how With which is in major project-based and Hubei, the we of of formed, gradually a

we're something client a certain That our very we the XXXX, able service be also from to station traffic the of determined can high been a the technology, is that is station investors.In are end-to-end. that value yield tell from the expected pricing built. potential AI of and even our by particular for ramping With capabilities up before it's

the connectivity are provide Now, have lifecycle maintenance, asset from to solar capable covering the procurement, full and new storage. EPC, energy energy for And planning, hardware solutions we services we to full owners advisory energy along monetize to pillar Solution can and our where chain.So see also analytical as I the capabilities. Energy recap, vital tool industrial value is ecosystem a a we our it growth. of

Operator

line the [ from from Zoe comes next of Our Fung question Tianfeng. ]

Unknown Analyst

GTR to the positive the and few past and achieved that GTR the of can rest expect and improving How on QX the in you months. Congratulations we in XXXX? NTR NTR perform

Alex Wu

since right, NTR to been September improve we expanding our our able XXXX, GTR. You're have we're consecutively, also while

high As and our both me NTR about report, reached earnings this disclosed in separately. talk historical listing.Let we our since GTR

the So explained the to operators. we us, in more expanding traffic to to for on market believe power. GTR market since higher and the network base, reliance also the our long-tail the user We we stronger GTR, bargaining can as become our our increasing mid- -- think with have is by more we we have as a long the scattered, operator improve we sorry, bargain growing.Also, mid hence as negotiate are further advantage provided before, CPOs I the see

So for example, mainly from from able achieve rate, users. driven of of membership net the we have to are different take the take demand that type a rate is we positive improved since net GTR.For subsidies.For capability beginning optimize a meet could to XXXX. achievement user that's This system deployed

to charging leveraged AI our also technology optimize pricing for the real-time have operators. We our

which fueling give rate subsidies, benchmark, reduce subsidies.If NTR Hence, to doing app, has is our parent company, industry. basically more in we in X.X% from mobile gas use the billing experience I can is a to X% Tuanyou, its the the between another Newlinks while called our reached our gas the that be So -- subsidy hence, increase giving we're net take and smarter targeted way. we

I think when a space EV consider be run. can the long the in charging as that benchmark we used

Operator

Q&A session. concludes That the

back call I for like would closing Now, turn to to remarks. the over the company

John Wang

once again for today. joining Thank you us

Thanks. feel please you us. If questions, free have contact further to

Operator

This concludes call. conference this

You Thank may your lines. now disconnect you.

NaaS Technology (NAAS) 29 Mar 242023 Q4 Earnings call transcript