Nano Labs Announces Second Half of 2024 Financial Results

PR Newswire

HONG KONG, March 25, 2025

HONG KONG, March 25, 2025 /PRNewswire/ -- Nano Labs Ltd (Nasdaq: NA) ("we," the "Company" or "Nano Labs"), a leading fabless integrated circuit design company and product solution provider in China, today announced its unaudited financial results as of December 31, 2024 and for the six months ended December 31, 2024.

Second Half of 2024 Financial Highlights

   -- Net revenue was RMB15.9 million (US$2.2 million) for the second half of 
      2024, compared to RMB26.1 million in the same period of 2023. 
 
   -- Gross profit was RMB11.6 million (US$1.6 million) for the second half of 
      2024, compared to a gross loss of RMB40.6 million in the same period of 
      2023. 
 
   -- Loss from operations was RMB39.8 million (US$5.5 million) for the second 
      half of 2024, compared to a loss from operations of RMB124.4 million in 
      the same period of 2023. 
 
   -- Net loss was RMB60.4 million (US$8.4 million) for the second half of 
      2024, compared to a net loss of RMB120.0 million in the same period of 
      2023. 
 
   -- Net loss per share (both basic and diluted) was RMB6.01 (US$0.84) for the 
      second half of 2024, compared to a net loss per share (both basic and 
      diluted) of RMB19.12 in the same period of 2023. 

Mr. Jianping Kong, Chairman and Chief Executive Officer of the Company, commented, "The year 2024 brings many opportunities as the Company expanded its business. We have formally established Bitcoin value investment as a new business sector and adopting Bitcoin as our primary reserve asset. As of the date of this press release, the Company holds about 400 BTC with a total purchase price of around $40 million.

Furthermore, in December 2024, we released upgraded complete machine equipped with the Cuckoo 3.0 iteration chip, which shows enhanced performance that achieves world-leading standard. This important improvement provides us with a key advantage to grow our market share. With the accelerated evolution of AI, we plan to create AI applications within the Web3.0 ecosystem and focus on integrating AI with Web3.0 technologies.

Through our visionary strategic planning and persistent execution, we remain committed to deepening our expertise in the Web3.0 domain. We believe we are able to create great value and deliver strong results for our supporters."

Mr. Bing Chen, Chief Financial Officer of the Company, commented, "for the second half of 2024, our net revenue was RMB15.9 million (US$2.2 million). In addition, the net loss was RMB60.4 million (US$8.4 million) for the six months ended December 31, 2024, compared to a net loss of RMB120.0 million in the same period of 2023. We are confident that we are able to to deliver exceptional value creation and present a satisfactory performance report to our stakeholders."

Second Half of 2024 Financial Results

Net Revenues

Net revenue was RMB15.9 million (US$2.2 million) for the second half of 2024, compared to RMB26.1 million for the same period of 2023. The decrease in net revenues was primarily due to the decrease in sales volume of iPollo V Series.

Cost of Revenues

Cost of revenues was RMB4.3 million (US$0.6 million) for the second half of 2024, compared to RMB66.6 million for the same period of 2023. The change was mainly due to the decrease in sales volume and less inventory write-down recorded.

Operating Expenses

Total operating expenses decreased by 38.7% to RMB51.4 million (US$7.1 million) for the second half of 2024 from RMB83.8 million for the same period of 2023.

   -- Selling and marketing expenses decreased by 17.7% to RMB4.8 million 
      (US$0.7 million) for the second half of 2024, from RMB5.8 million for the 
      same period of 2023. The decrease in selling and marketing expenses was 
      primarily due to the decrease in employee salary expenses. 
 
   -- General and administrative expenses increased by 13.5% to RMB25.4 million 
      (US$3.5 million) for the second half of 2024, from RMB22.4 million for 
      the same period of 2023. The increase in general and administrative 
      expenses was primarily due to the increase in depreciation expenses. 
 
   -- Research and development expenses decreased by 61.9% to RMB21.2 million 
      (US$3.0 million) for the second half of 2024, from RMB55.6 million for 
      the same period of 2023. The decrease in research and development 
      expenses was primarily due to the decrease in salary expenses, material 
      fees, and equipment fees. 

Loss from Operations

Loss from operations was RMB39.8 million (US$5.5 million) for the second half of 2024, compared with loss from operations of RMB124.4 million for the same period of 2023.

Finance Expenses

Finance expenses was RMB2.0 million (US$0.3 million) for the second half of 2024, compared with finance income of RMB0.7 million for the same period of 2023.

Interest Expenses

Interest expenses was RMB4.9 million (US$0.7 million) for the second half of 2024, compared with nil for the same period of 2023. The change was due to the completion of construction in progress and cease of interest capitalization during the first half of 2024.

Change in fair value of cryptocurrencies

Change in fair value of cryptocurrencies was RMB 15.7 million (US$2.2 million) loss for the second half of 2024, compared with nil for the same period of 2023.

Net Loss

Net loss was RMB60.4 million (US$8.4 million) for the second half of 2024, compared with RMB120.0 million in the same period of 2023.

Basic and Diluted Loss Per Ordinary Share attributable to Nano Labs Ltd

Basic and diluted loss per share was RMB6.01 (US$0.84) for the second half of 2024, compared with basic and diluted loss per share of RMB19.12 for the same period of 2023.

Cash and Cash Equivalents

As of December 31, 2024, the Company had cash and cash equivalents of RMB32.4 million (US$4.5 million), compared with RMB48.2 million as of December 31, 2023.

Exchange Rate

This press release contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) solely for the convenience of the reader. Unless otherwise specified, all translations of Renminbi amounts into U.S. dollar amounts in this press release are made at RMB7.1884 to US$1.00, the central parity rate on December 31, 2024 published by the People's Bank of China.

Non-GAAP Financial Measures

In evaluating our business, we consider and use adjusted net income/(loss) as an additional non-GAAP measure to review and assess our operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define adjusted net income/(loss) as net income/(loss) excluding share-based compensation expense.

We present the non-GAAP financial measure because they are used by our management to evaluate our operating performance and formulate business plans. Non-GAAP financial measures enable our management to assess our operating results without considering the impact of non-cash charges and non-operating items. We also believe that the use of the non-GAAP measure facilitates investors' assessment of our operating performance.

The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measure is that they do not reflect all items of income and expense that affect our operations. Share-based compensation expenses have been and may continue to be incurred in our business and are not reflected in the presentation of adjusted net income/(loss). Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

Conference Call

The Company will host an earnings conference call to discuss its financial results at 8:30 am U.S. Eastern Time (8:30 pm Beijing Time) on March 25, 2025.

For participants who wish to join the call, please access the link provided below to complete the online registration process.

Registration Link: https://s1.c-conf.com/diamondpass/10046219-hj76t5.html

Upon registration, participants will receive the dial-in number and unique PIN, which can be used to join the conference call. If participants register and forget their PIN or lose their registration confirmation email, they may simply re-register and receive a new PIN. All participants are encouraged to dial in 15 minutes prior to the start time.

A live and archived webcast of the conference call will be accessible on the Company's investor relations website at: https://ir.nano.cn/.

A telephone replay of the call will be available until 1 April 2025 via the following dial-in details:

Dial-in Numbers:

 
US/Canada:          1855 883 1031 
Hong Kong:          800 930 639 
China:              400 1209 216 
Replay PIN:         10046219 
 

About Nano Labs Ltd

Nano Labs Ltd is a leading fabless integrated circuit ("IC") design company and product solution provider in China. Nano Labs is committed to the development of high throughput computing ("HTC") chips, high performance computing ("HPC") chips, distributed computing and storage solutions, smart network interface cards ("NICs") vision computing chips and distributed rendering. Nano Labs has built a comprehensive flow processing unit ("FPU") architecture which offers solution that integrates the features of both HTC and HPC. Nano Lab's Cuckoo series are one of the first near-memory HTC chips available in the market*. For more information, please visit the Company's website at: ir.nano.cn.

*According to an industry report prepared by Frost & Sullivan.

Forward-Looking Statements

This report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, the Company's plan to appeal the Staff's determination, which can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

For investor and media inquiries, please contact:

Nano Labs Ltd

Email: ir@nano.cn

Ascent Investor Relations LLC

Tina Xiao

Phone: +1-646-932-7242

Email: investors@ascent-ir.com

 
                        Consolidated Balance Sheets 
                                  (Unaudited) 
 
                                    As of 
                                 December 31,      As of December 31, 
                                    2023                  2024 
                                -------------  --------------------------- 
                                     RMB            RMB           US$ 
ASSETS 
 Current assets: 
   Cash and cash equivalents       48,164,664     32,431,081     4,511,585 
   Restricted cash                    417,990        418,722        58,250 
   Accounts receivable, net         1,739,065        572,803        79,683 
   Inventories, net                12,874,986     29,866,418     4,154,807 
   Prepayments                     24,386,010      4,606,066       640,764 
      Other current assets         37,908,092     55,858,433     7,770,635 
   Cryptocurrencies                         -    242,889,085    33,789,033 
Total current assets              125,490,807    366,642,608    51,004,757 
 Non-current assets: 
   Property, plant and 
    equipment, net                169,653,582    197,341,915    27,452,829 
   Intangible asset, net           47,731,288     46,745,444     6,502,900 
   Operating lease 
    right-of-use assets             7,424,554      5,203,525       723,878 
Total non-current assets          224,809,424    249,290,884    34,679,607 
                                -------------  -------------  ------------ 
 
TOTAL ASSETS                      350,300,231    615,933,492    85,684,364 
                                =============  =============  ============ 
 
LIABILITIES AND SHAREHOLDERS' 
 EQUITY (DEFICIT) 
Current liabilities: 
   Short-term debts                20,000,000     18,000,000     2,504,034 
   Current portion of 
    long-term debts                 3,410,000      5,350,000       744,255 
   Accounts payable                16,875,586     18,101,451     2,518,147 
   Advance from customers         107,826,617     98,895,905    13,757,708 
   Operating lease 
    liabilities, current            3,479,752      1,914,109       266,277 
   Other current liabilities       90,978,171     67,163,217     9,343,278 
Total current liabilities         242,570,126    209,424,682    29,133,699 
Non-current liabilities: 
   Long-term debts                120,260,783    170,683,636    23,744,315 
   Operating lease 
    liabilities, non-current        3,730,672      2,917,350       405,841 
Total non-current liabilities     123,991,455    173,600,986    24,150,156 
                                -------------  -------------  ------------ 
Total liabilities                 366,561,581    383,025,668    53,283,855 
                                -------------  -------------  ------------ 
Shareholders' equity 
(deficit): 
     Class A ordinary shares 
      ($0.002 par value; 
      12,141,093 and 
      14,141,093 shares 
      authorized as of 
      December 31, 2023 and 
      2024, respectively; 
      4,192,730 and 13,273,596 
      shares issued as of 
      December 31, 2023 and 
      2024, respectively; 
      3,724,236 and 12,815,143 
      shares outstanding as of 
      December 31, 2023 and 
      2024, respectively)*             50,106        176,842        24,601 
     Class B ordinary shares 
      ($0.002 par value; 
      2,858,909 shares 
      authorized; 2,858,909 
      shares issued and 
      outstanding as of 
      December 31, 2023 and 
      2024)*                           36,894         36,894         5,132 
   Additional paid-in capital     428,310,028    780,499,664   108,577,662 
   Accumulated deficit          (452,031,693)  (565,218,741)  (78,629,283) 
   Statutory reserves               6,647,109      6,647,109       924,699 
   Accumulated other 
    comprehensive income            2,254,558      8,647,353     1,202,959 
Total Nano Labs Ltd 
 shareholders' equity 
 (deficit)                       (14,732,998)    230,789,121    32,105,770 
   Noncontrolling interests       (1,528,352)      2,118,703       294,739 
Total shareholders' equity 
 (deficit)                       (16,261,350)    232,907,824    32,400,509 
 
TOTAL LIABILITIES AND 
 SHAREHOLDERS' EQUITY 
 (DEFICIT)                        350,300,231    615,933,492    85,684,364 
                                =============  =============  ============ 
 
 
*After giving effect of the 2-for-1 and 10-for-1 reverse stock split 
effective on January 31, 2024 and November 3, 2024, respectively 
 
 
  Consolidated Statements of Operations and Comprehensive Income (Loss) 
                                 (Unaudited) 
 
                                 For the six months ended December 31, 
                               ----------------------------------------- 
                                    2023                 2024 
                               --------------  ------------------------- 
                                    RMB            RMB           US$ 
 Net revenues                      26,066,660    15,856,436    2,205,837 
 Cost of revenues                  66,617,485     4,284,184      595,986 
 Gross profit (loss)             (40,550,825)    11,572,252    1,609,851 
 
 Operating expenses: 
    Selling and marketing 
     expenses                       5,830,986     4,801,639      667,970 
    General and 
     administrative expenses       22,360,766    25,379,491    3,530,618 
    Research and development 
     expenses                      55,648,133    21,210,897    2,950,712 
 Total operating expenses          83,839,885    51,392,027    7,149,300 
 
 Loss from operations           (124,390,710)  (39,819,775)  (5,539,449) 
                               --------------  ------------  ----------- 
 
 Other expenses (income): 
    Finance expenses (income)       (680,536)     1,994,310      277,434 
    Interest expenses                       -     4,903,728      682,172 
    Interest income                 (153,112)     (407,669)     (56,712) 
    Change in fair value of 
     cryptocurrencies                       -    15,744,170    2,190,219 
     Other income                 (3,507,095)   (1,660,935)    (231,058) 
 Total other expenses 
  (income)                        (4,340,743)    20,573,604    2,862,055 
 
 Loss before income tax 
  provision                     (120,049,967)  (60,393,379)  (8,401,504) 
    Income tax provision             (17,394)             -            - 
                               --------------  ------------  ----------- 
 Net loss                       (120,032,573)  (60,393,379)  (8,401,504) 
                               --------------  ------------  ----------- 
 Less: net loss attributable 
  to noncontrolling 
  interests                       (1,528,282)   (4,440,071)    (617,672) 
 Net loss attributable to 
  Nano Labs Ltd                 (118,504,291)  (55,953,308)  (7,783,832) 
                               ==============  ============  =========== 
 
 Comprehensive income (loss): 
 Net loss                       (120,032,573)  (60,393,379)  (8,401,504) 
 Other comprehensive income 
 (loss): 
       Foreign currency 
        translation 
        adjustment                (1,616,096)     1,591,571      221,408 
                               --------------  ------------  ----------- 
 Comprehensive Loss             (121,648,669)  (58,801,808)  (8,180,096) 
                               --------------  ------------  ----------- 
 Comprehensive loss 
  attributable to 
  noncontrolling interests        (1,528,352)   (4,440,489)    (617,730) 
                               --------------  ------------  ----------- 
 Comprehensive loss 
  attributable to Nano Labs 
  Ltd                           (120,120,317)  (54,361,319)  (7,562,366) 
                               ==============  ============  =========== 
 
 Net loss per ordinary share 
 attributable to Nano Labs 
 Ltd 
  Basic*                              (19.12)        (6.01)       (0.84) 
                               ==============  ============  =========== 
  Diluted*                            (19.12)        (6.01)       (0.84) 
                               ==============  ============  =========== 
 
 Weighted average number of 
 shares used in per share 
 calculation: 
  Basic*                            6,197,066     9,316,203    9,316,203 
                               ==============  ============  =========== 
  Diluted*                          6,197,066     9,316,203    9,316,203 
                               ==============  ============  =========== 
 
 

 *After giving effect of the 2-for-1 and 10-for-1 reverse stock split 
  effective on January 31, 2024 and November 3, 2024, respectively 
 
 
                             Non-GAAP Reconciliation 
                                   (Unaudited) 
 
                                     For the Six Months Ended December 31, 
                                   ----------------------------------------- 
                                        2023                 2024 
                                   --------------  ------------------------- 
                                        RMB            RMB           US$ 
Net loss                            (120,032,573)  (60,393,379)  (8,401,504) 
Add: 
Share-based compensation expenses         580,813       116,013       16,139 
Non-GAAP adjusted net loss          (119,451,760)  (60,277,366)  (8,385,365) 
 

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