Nano Labs Ltd Q4 FY2024 earnings call

• Established Bitcoin value investment as a new business sector, holding about 400 BTC with a total purchase price of around $40 million.
• Launched an upgraded complete machine equipped with a Cuckoo 3.0 iteration chip in December 2024, providing competitive advantage.
• Plan to develop AI applications with the Web3.0 ecosystem, focusing on integration of AI and Web3.0 technologies.

In the second half of 2024, net revenue was RMB15.86 million ($2.21 million) compared to RMB26.07 million in the same period last year. Gross profit was RMB11.57 million ($1.61 million) for the second half of 2024 compared to a gross loss of RMB40.55 million in the same period of 2023. Cost of revenue for the second half of fiscal year 2024 was RMB4.28 million ($0.6 million) compared to RMB66.62 million in the same period of 2023. Total operating expenses decreased by 38.7% to RMB51.39 million ($7.15 million) from RMB83.84 million in the same period of 2023. Loss from operations was RMB39.82 million ($5.54 million) for the second half of 2024 compared with loss from operations of RMB124.4 million for the same period of 2023. Net loss was RMB60.39 million ($8.4 million) for the second half of 2024 compared to a net loss of RMB120 million in the same period of 2023. Basic and diluted loss per share was RMB6.01 ($0.84) for the second half of 2024 compared to RMB19.12 in the same period of 2023. As of December 31, 2024, cash and cash equivalents were RMB32.43 million ($4.51 million) compared with RMB48.16 million as of December 31, 2023.

• Confident in business strategy and ability to execute it.
• Will continue to leverage technology to capture development opportunities, drive long-term growth, and create value for shareholders.

• Forward-looking statements based on current expectations and market conditions, with risks that actual results may differ materially from forward-looking statements. Further risks detailed in SEC filings.

Q: Why is the company considering increasing its holdings of Bitcoin?

A: Believes Bitcoin is a strategic asset with long-term value for reserves, plays a role in Web3.0 ecosystem, limited supply provides inflation hedge and growth potential, and many countries recognize it as a national strategic reserve asset.

Q: What considerations have driven the company's recent financing activities?

A: Driven by business adjustments and expansion initiatives, particularly increased investment in Bitcoin as a strategic asset, with alignment with strategic investors' outlooks.

Q: What is the company's plan for future development?

A: Focus on the broader metaverse ecosystem, continue exploring emerging market opportunities, start from design of cryptocurrency IC chips, and develop AI plus Web3.0.

Q: What is the company's expectation for future income?

A: Cuckoo 3.0 equipped machines are being steadily shipped and will impact business performance, currently focusing on optimizing product management and operations and seizing emerging market opportunities as they arise.