NAAS - Earnings call transcript Q2 2024

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the NaaS Second Quarter and First Half 2024 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, company's Investor Relations Director. Thank you, and please go ahead.

John Wang

Thank you, operator, and hello, everyone, and welcome to NaaS Second Quarter and First Half 2024 Earnings Conference Call. issued and were posted results company's earlier are today online. The

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

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

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

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

Wang Yang

pleasure [Foreign pleased Language] average June NaaS' of achieved that I'm Kathy we strategic NaaS' Language] highlights first CEO, Hello, the month profit. It's for positive everyone. announce XXXX, our for are second We month the quarter to XXXX. [Foreign first and half and share to progress the of my Wang.

strategic reducing and and carry costs, profitability to our have significantly optimization we is part our improvement goal staff Our to method, and efficiency. business of into enhancing fourth edge. the the XXXX. third quarters this the in strengthening through Moreover, In concentrated core management competitive on

pace [indiscernible] and expanding performance, Language] automotive brink we with extensive to lead keep on revolution autonomous brands. profit one-stop Language] been China leading exploring with of road this focused XXXX, have growth. [Foreign on refined scenarios proactively groundwork manufacturer autonomous solutions have specialized our ongoing consistently the financial for as solutions which with stands market collaborations We charging the as led transport. we of driving, We the for setting Since To autonomous in with ecosystem partners. [Foreign change, a energy for stage have autonomous early a solutions. our will charging year are vehicle automotive

with our our Energy, strategic performance. with expertise partnership including GAC ZEEKR, monetization enhancing a the realize recent Wall a technological Language] major provide Great These solid President and for Language] Deep Motors, players, Thank with of strategic Automotive. [Foreign have help Aito, Blue efficiency financial over our collaborations Geely, also I Beyond our strong at and CFO, Alex, YUE, gradually Hyundai, energy JI automotive call of alliance extensive vision so industry and diverse us you. us foundation turn will and They operating opportunities. Now the transportation. [Foreign to look closer of we

Alex Wu

Hello, everyone, for the joining discuss Kathy. quarter. you, Thank progress this thank to today. made I'm we substantial you us and excited

look update the Let's business first. at

digital unmanned and developing aggressively been better and charging solution trends. embrace driving related AI the have We autonomous to technologies

NaaS technologies. leads vision enhanced deep strides we set to are our that revolutionary these being commercial scenarios. With in in quarter, Our learning, VXX charging drive in vehicle and area, made ensuring charging smart to technologies driverless in XD that second the significant of said, in the approach cutting-edge adoption the changes

Energy expertise billion-dollar and ensuring complex charging instance, year, robots AI towards station last market. with robots with NEF in of charging obstacle the and safe intervention, avoidance digital autonomous can or For since the path-finding, vehicle to transformation a sophisticated features. initial we little experience. Furthermore, upgraded now platform, smarter is launch our streamlined human charging no our control, construction Fintech, a charging These manage now NAAS and more analytics, the sector driving building on operations

site critical or in In serving charging for CPOs, stages, station the in AI point life charge algorithm NEF advanced the stations. particularly analyzing Our helps early cycle operations responsible integrated charging traffic by charging NEF system throughout for well, intelligence operators, expertise. regional as demand uses their online comprehensive digitalization of stations we leveraging calculate operate, and potential selection, are Furthermore, charging flow start returns after our to data. investment

previously, energy share a comprehensive our formed leading NEF company a mentioned not a station them only This through related partnership also with supply new As the us charging with but brought to charging services power charging transactions. platform. collaboration we slate Kathy from revenue our boosted of a sales, of

it visibility joint site through has brand our operations. enhanced NaaS Additionally,

of partnership track replication online other already third this are with During the X,XXX the we Changsha. to in in nearly nearly model regions successfully this the chargers a second we on by bring XX additional success, exploring quarter, launched quarter. and initiative underway chargers this with are by Encouraged similar

automotive charging we on services a through wider AI-powered keep manufacturers Kathy scale. network autonomous solutions As extensive AI-powered the vital and manufacturer in partners progress. AI our deliver in This of capabilities charging digital NEF, capacity high-quality China's now ensures services outlined. of mainstream our and automotive a this various with analytics to majority advancing collaborations cover is our We

of As launched new a new we for XX launches. achieving record for a terms high vehicle We supporting in top quarter brands models. quarter energy XXXX, model new XXX in services single alone, XX, added models of June have XX the second

continue reach. Our our broaden automotive ecosystem reach extensive market network our to and partners growing of manufacturing and

management our of our operational financial improved and substantially to on efficiency quarter. reached XXXX. Notably, quarter, move net the historical financials quarter lowest which for We this its second margin loss level significantly this performance. boosted let's Now our

and to some another monthly excited to for I'll success. to expanding this behind the costs. key our of June turned profit announce In We positive the are drivers also revenue you disciplined quarter's thanks XXXX, net first through time, reducing non-IFRS milestone. walk our approach

growth to XX.X by all quarter, segments. RMB million this propelled Our revenue across XX% of increased business robust X our by year-over-year

profitable our our business of to our only this contributing also year. quarter's model, substantial compared Specifically, This same charging million the but core our to period in services. underscores continued to execution and up growth charging flourish, RMB enhancing revenue, services highlights resilience XX% XX.X last the not viability outstanding

our effective markets. emerging strides strengthening streams each we XXX%. agile Revenues quarter, made by solutions significant from our revenue energy to this initiatives, in addition strategy core thanks positioning soared diversifying business, and over our new to in In and

for a Specifically, surged million. Alongside its to RMB revenue continues as revenue we RMB our to our to highest margins RMB in June and are our ability and excellent proportion to relative as million positive presence drove was solutions profit only primarily we our we our to sustainably performance improvements also scale the testament robust market reduction by impressive expanding of grow. In our quarter Furthermore, strategy by performance gross to significant and of NCR increased are of services. the our in by our quarter XXXX. and with our X.X and lows year-over-year record business XX financial critical This XXX% XX% reached optimization million, year-over-year high-margin foundation non-IFRS new XXXX. fueled operating indicators in sustainably our gross from the X orders stands scale. operational economics energy the strengthening part XXXX, management. highlighting XX% to realizing strategy year-over-year continue quarter, to second our profitability, as In long-term The expand of Cost of manage revenue, revenue our our from expenses net charging the expand. net XXX% increased in grew initiatives this financial performance quarter's our substantial business structure clear this quarters, growth efficiency in enhanced to of growth, second profit network our development charging effectiveness to capabilities. XX.X the Notably, the our margin loss reduced summary, past over the but operational we of services to and level of leveraging are not The the our growth. of a operational quarter enhance second

discipline, dedicated innovation, today. all forward, value we continued we take deliver you progress, trust for now concludes stakeholders. we remarks support. This and questions. enduring remain our our are As ready you. to prepared will your Operator, to to move for financial Thank Thank and to

Operator

Sachs. Ting The with first [Operator from question Instructions] comes Goldman Song

Ting Song

X. have I

able meaningfully to fast second going and you can revenue on And share growth up, how elevate color years? margin expect more The X how profit the is, are you ahead? as revenue do continues and your is first breakeven your scale next you question to a net enjoy quarterly drivers NaaS the level my in

Alex Wu

the question regarding and a first a XXXX. milestone non-IFRS net flow improvement, your we quarter single-month of in breakeven margin cash in second To reached positive June profit operational

business these in operations effort made achieve milestones. to a order lot have optimize to We our of

Our revenue in second improvement our to XXXX. is contributor major net profit one quarter margin the of

on With of EV both penetration in charge increase have we enjoyed the fast drivers the and EV operators China, our platform. EV point the

with year-over-year, XXXX quarter rate. and growth growing second both a lines its XX% revenue healthy at maintained business increased momentum Our

amount absolute adopt gross solutions gross The the of stable margin XXXX energy million increased a relatively quarter. look platform business while business margin. to RMB XX% business, to the we up. contributor major profit a gross second charging is quarter-over-quarter our profit points in The in the XX.X second gross you our profit, while scale X quarter If service percentage has margin profit XX%, the at as model, profit increased we as improved

As upside have our profit we of grow improvement. in margin still its we believe in size, we gross

have look as significant you we expense, at progress well. made If the

got you only and revenue it's comparison time growth financial is by the decreased think, it below while operating to non-IFRS which second year-over-year, some percentage percentage since up, total optimized give we maintaining of from half scale not operating revenue Our is than is now of XX% first marketing cut receive we To is Especially, expense improvement for our fast that operations. listed. quarter It our our that our evidence we expense XXXX, our a sales our order XX%. same also profitable of is at result from our to I largely a tightened of leverage XXX% control. pace. The expense of due In orders. only our is very our as level, to number the XX%, total but more numbers, operation revenue

Our our of due or a healthy net take all-time increased very rate gross throughout CPOs. second also high take the acquisition maintained long-tail reached rate, at And so-called has level GTR, has quarter been to XXXX. level

of the OEMs and our seeing number also drivers to number are VIP services an to subscribe us. increasing We increasing work with of

resources work certainly our and question metrics indicators positive direction, from milestone continue in allocate This we after is on past we and first business terms have margin, seeing operation business from energy for and your our efficiency. and performance. to answer to we very quarter encouraging will been right So the on the very the in of financial in us,

an good general, our XX% In a year-over-year a your right? different very If segments second numbers seen strong both is growth, enjoyed at to XXXX revenue momentum, healthy question first, which question, segments, of second growth. revenue growth. another So let's look maintained revenue very regarding and at in major we the growth look we've quarter our

seeing due Our supply charging the demand the year-over-year coverage are charging increasing both a our to on side increase services network. side of XX% and

those XX processed and million quarter, have We in XX% transactions are profitable. the transactions passing of

as EPC AI keep solutions and gain business we result from more driving growth growth. from capabilities improving more hardware the on our operations, state work energy role business, where in the to a projects CPOs our year-over-year we get constantly we like site would XXX% and of energy in that which can On the them, AI emphasize selection, solutions. I orders capabilities in with, we trust

point able millions AI to we the operational are partners we build to operator of we enjoy models charge As transactions from empower better our that outcomes. processed,

with solution are we can through business capability, deployment software For potentially us to CPOs provider, that sales we for for charging opportunities capabilities to will locations the the monetize AI one-stop recommend the and our choose operator With better stations. and as a subscription potential fees. example, able hardware new

AI deploy China, we we will with leadership For Meanwhile, with maintaining quarter. To Central the our demand. collaborating third the the fast penetration charging our EV of growth in with in of of the and them largest the X,XXX EV we chargers China are example, in capabilities. fast CPOs sum market in up, are are one help enjoying

those business capabilities, continue opportunities we as AI We grow. Thank to have and started more to you. explore monetize we'll

Operator

question next from with The James comes Zou UBS.

Nianyi Zou

question. one have I

on As take the were details the such more financial metrics, numbers, gross through improving can take as the rate? share we you and operating net rate with us

Alex Wu

enhancing reason were question. James, net The of non-IFRS June and of margin that the because able continuous operating Thanks, the to in our breakeven improvement was profit in Great. effort metrics we main for achieve business.

at you GTR an GTR, example, our reasons for The So if twofold. has all-time look reached high. are

us enjoy to on our number to First, joining therefore, see helps bargaining our have a to algorithm to better rate. outcome platform, where And two CPOs platform allow long-tail CPOs which and traffic more we're our able get power. we a continued better commission bring CPOs operational the better

for that's GTR. So

For higher to continue the we retain algorithm our a marketing with and NTR, where are we our advanced acquire to net level, take sales the drive rate, efficiency users. and NTR improving to

close For of quarter example, members VIP our to XXXX. net XX% quarter-over-quarter increased the addition second of in

a profitable orders XX% of As orders. all increased result, of our to number

to So to capabilities, and of make you. AI metrics operating sustainable improve in we will our our conclusion, the algorithm strive we continue model. a and profitable business Thank iterations and more through

Operator

next The Zhang with question Ethan from Nomura. is

Ethan Zhang

popular in China. So recently, robotaxi has become very

question see new your position you autonomous driving my is, how the So do area? in

Alex Wu

question. That's a good Ethan. very Thanks,

models this trend we've been of have while. actually vehicles, as EVs. electric most the seen, at that they're a We looking for Robotaxi, or

operate. need to of some be charging to infrastructure need vehicles So these sort --

to AI with potentially could to their robotaxi help partnership EV operation good with best OEMs, optimal put charging owners into the system. a algorithm establish large we network. position and extensive operating its could And system, will charging closer have help the locations we find infrastructure. our charging utilize robotaxi access to Particularly, operating optimize our EV to very smart to Given ourselves that we our

importantly, where has technologies. When to other technologies autonomous charging initially robot, XD VXX, we such which the think is initially no involved reviewed had need charging. deploy autonomous the core and and driving future intelligent facilitate actions, there mind, robots, charging human year We charging learning, we vision autonomous mind. in autonomous the have we wouldn't all improving has our any since, there ever More in deep we last always be drivers, always as the in the for the been robotaxi

is for specifically charging the purpose. designed robot that So

adapt autonomous unfold, the to Thank we empower driving to charging are era. new you. the to and As software infrastructure at the seat believe we to front continues the

Operator

from Feng is with [Operator Instructions] question Tianfeng The Zoe next Securities.

Zoe Feng

updates have development Could such you latest makers. you that share up on a with know I could and how us? partnering benefit more been EV of lot the benefits

Alex Wu

partnership partners. QX, Thank with our our In Zoe. you, we improved further have OEM

and XXX ecosystem. EV major with Specifically, YUE our our with embed into of we YUE services to the in we provide -- and enhance have established EV with end JI capabilities more of in create better OEMs a drivers, to our QX, to and built a services charging charging QX, By partnered the JI partnership platform most wholesome than models.

EV us with a Our of continued in collaborations number OEMs ways. help

fees and within revenue make First, from customers and our we probably users a collaborations are setup build in leadership Vehicle us partnerships. through NaaS OEM. collaboration and research more charge Technology institutes stakeholders revenue various can importantly, acquire China platform ecosystem. that, Report. Meanwhile, government-sponsored Swap get Electric Automotive we And and new brand is the and partnerships. to system those collaborated we This with turn, advancement obviously And Battery onetime Development engaged Industry to and help maintain release when technology China with Center setting these role the society. and are help Charging carbon-neutral Research second, from ongoing to using whole we collaboration initiatives in make a awareness industry creating technological and industry could technological the to highly in in the the our more standards. Moreover, making a and subscription leadership government charging the us in

of millions carbon For benefit EV first could which inclusive example, platform, partnered we Harbin's service with drivers.

been service Our deployed, and government millions power service for EV also to Zhejiang which charging of local drivers. grid platform and has infrastructure, monitor its help recently could better

EV Thank want to the experience partnership to in these and stronger charging drivers. the for all with is the fast-growing a partnerships conclusion EV this leverage build you. better industry industry, user create So in we a stakeholders

Operator

company like question-and-answer the concludes turn This closing remarks. to conference session. I back to the over our for would

John Wang

joining Thank you once again for us today.

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

Operator

This concludes this call. conference

your disconnect lines. You may you. Thank

NaaS Technology (NAAS) 24 Jul 242024 Q2 Earnings call transcript