Nano Labs Ltd (NA) 0 Q0 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to Nano Lab's second half of fiscal year 2023 earnings conference call. (Operator Instructions) This conference is being recorded today, Monday, March 18, 2024.

女士們先生們，謝謝你們的支持。歡迎參加 Nano Lab 2023 財年下半年收益電話會議。 （操作員說明）本次會議將於今天（2024 年 3 月 18 日星期一）進行錄製。

Joining us today from Nano Labs are the company's Chairman and Chief Executive Officer, Mr. Jianping Kong and the company's Chief Financial Officer, Mr. Bing Chen. On our call today, Mr. Kong will give you an overview of the company's performance, Mr. Chen will share the details of the company's financial results. After that, we will conduct a question-and-answer session to take your questions.

今天加入我們的有來自 Nano Labs 的公司董事長兼執行長孔建平先生和公司財務長陳兵先生。在今天的電話會議上，孔先生將向您介紹公司的業績概況，陳先生將分享公司財務表現的詳細資訊。之後，我們將進行問答環節，回答大家的問題。

Before we continue, I would like to remind you that some information discussed on this call will contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the US Private Securities Litigation Reform Act of 1995. Such statements are based upon management's current expectations and current market operating conditions and relate to events that involve unknown -- 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.

在我們繼續之前，我想提醒您，本次電話會議中討論的一些資訊將包含1934 年《證券交易法》第21E 條（經修訂）和《美國私人證券訴訟改革法案》中定義的前瞻性陳述。控制範圍，這可能導致公司的實際結果、績效或成就與前瞻性陳述中的結果有重大差異。有關這些和其他風險、不確定性或因素的更多資​​訊包含在該公司向美國證券交易委員會提交的文件中。

During today's call, Mr. Kong and Mr. Chen will deliver their remarks in Chinese and the company's representative will provide corresponding English translation. With that, I will now turn the call over to Mr. Kong, the company's Chairman and Chief Executive Officer. Mr. Kong, please go ahead

在今天的電話會議中，孔先生和陳先生將用中文發表講話，公司代表將提供相應的英文翻譯。現在我將把電話轉給公司董事長兼執行長孔先生。孔先生，請繼續

(interpreted) Thank you, operator and everyone for joining Nano Lab's second half of fiscal-year 2023 earnings conference call today. In the second half of 2023, our company benefited from the supportive government policy and positive macro trends. The Hong Kong government's strong support for the laboratory industry and the historic approval of the first bitcoin spot ETF by the SEC in early 2024 have bolstered the industry, infusing optimism and propelling progress.

（翻譯）感謝業者和大家今天參加 Nano Lab 的 2023 財年下半年收益電話會議。 2023年下半年，公司受惠於政府政策支持和宏觀向好的趨勢。香港政府對實驗室行業的大力支持以及美國證券交易委員會 (SEC) 於 2024 年初歷史性地批准了首隻比特幣現貨 ETF，為該行業注入了樂觀情緒並推動了進步。

Our management team is actively pursuing global market expansion opportunities. Through a series of market expansion initiatives, we aim to continue exploring potential market opportunities to increase our market share.

我們的管理團隊正積極尋求全球市場擴張機會。透過一系列的市場拓展舉措，我們的目標是繼續探索潛在的市場機會，以增加我們的市場份額。

In terms of research and development, our Cuckoo series iterative products are currently undergoing intensive R&D efforts. Significant advancements were made in the later half of 2023, and we anticipate the launch of enhanced versions of our products in 2024, which are expected to deliver substantially improved performance. Additionally, our company is concurrently upgrading our packaging technology and IP to enhance the efficiency of chip production. We are also laying the groundwork for research and development of AI computing, ZK computing, and other chips to seize emerging market opportunities.

研發方面，我們的Cuckoo系列迭代產品目前正在緊鑼密鼓的研發中。 2023 年下半年取得了重大進展，我們預計將在 2024 年推出產品的增強版本，預計將大幅提高效能。此外，我們公司正在同步升級封裝技術和IP，以提高晶片生產效率。我們也正在為AI運算、ZK運算等晶片的研發奠定基礎，以抓住新興市場機會。

Our metaverse business line, iPollo Metaverse, offers a photographic studio service that includes 3D scanning and 3D printing services. These surveys have not only received high praise from athletes at the Asian Games but also provided diverse digital applications scenarios for various IPs. It assists in the digitalization of various types of IPs, helping them enter the metaverse track. Furthermore, the photographic studio service offers personalized customization services to users, allowing a wide range of enthusiasts to experience the joy of DIY in the metaverse.

我們的 Metaverse 業務線 iPollo Metaverse 提供攝影工作室服務，包括 3D 掃描和 3D 列印服務。這些調查不僅得到了亞運運動員的高度評價，也為各類IP提供了多樣化的數位應用場景。協助各類IP數位化，幫助其進入元宇宙賽道。此外，影樓服務也為使用者提供個人化客製化服務，讓廣大愛好者在元宇宙中體驗DIY的樂趣。

We firmly believe that with the favorable policies and support combined with our continued dedication and efforts, we will continue to progress and provide additional services for the development of the web3.0 industry. Thank you for your continued support to the company.

我們深信，在政策的利多和支持下，加上我們不斷的奉獻和努力，我們一定會不斷進步，為web3.0產業的發展提供更多的服務。感謝您一直以來對公司的支持。

Next, I will turn the call over to our Chief Financial Officer, Mr. Chen, for a closer review of our financial results. Mr. Chen, please go ahead.

接下來，我將把電話轉給我們的財務長陳先生，以便更仔細地審查我們的財務表現。陳先生，請講。

(interpreted) Thank you, Mr. Kong. Good morning, everyone. On behalf of the management team, I will provide a brief financial overview of the second half of fiscal year 2023. During the period, although our performance fell short of our ideal, we are encouraged by the gradual recovery in the market.

（譯）謝謝孔先生。大家，早安。我謹代表管理團隊簡單介紹一下2023財年下半年的財務概況。

Net revenue was RMB26.1 million or USD3.7 million for the second half of 2023 from the RMB603.0 million for the same period of 2022. The decrease in net revenues was primarily due to the drop of sales volume of iPollo V1 Series and B1 Series. Meanwhile, the revenues in 3D printing products, our new product, was RMB787,000 for the second half of 2023 compared to nil for the same period of 2022. Cost of revenues was RMB66.6 million or USD9.4 million for the second half of 2023 compared to RMB549.2 million for the same period of 2022.

2023 年下半年的淨收入為 2,610 萬元（370 萬美元），而 2022 年同期為 6.030 億元（370 萬美元），而 2022 年同期為 6.030 億元。同時，我們的新產品 3D 列印產品 2023 年下半年的收入為人民幣 787,000 元，而 2022 年同期為零。 ，而2022年同期為人民幣5.492億元。

Operating expenses were RMB83.8 million or USD11.8 million for the second half of 2023 compared to RMB140.7 million for the same period of 2022. Selling and marketing expenses decreased to RMB5.8 million or USD0.8 million for the second half of 2023 compared to RMB14.3 million for the same period of 2022. The decrease in selling and marketing expenses was primarily due to a decrease in advertising fee and marketing promotion expenses.

2023 年下半年營運費用為 8,380 萬元人民幣（1,180 萬美元），而 2022 年同期為 8,380 萬元人民幣（1,180 萬美元），而 2022 年同期為 1.407 億元人民幣。萬元，而2022年同期為人民幣1,430萬元。

General and administrative expenses decreased to RMB22.4 million or USD3.2 million for the second half of 2023 from RMB36.3 million for the same period of 2022. The decrease in general and administrative expenses was primarily due to a decrease in professional fees and employee salary expenses as the number and the salaries of general and administrative staff decreased.

2023 年下半年的一般及管理費用從 2022 年同期的人民幣 3,630 萬元減少至 2023 年下半年的人民幣 2,240 萬元（即 320 萬美元）。支出隨著一般和行政人員的數量和工資的減少而減少。

Research and development expenses decreased to RMB55.6 million or USD7.9 million for the second half of 2023 from RMB90.2 million for the same period of 2022. The decrease in research and development expenses was primarily due to a decrease in equipment costs, salary expenses and share-based compensation expenses. The company expects to continue its significant investments in research and development to support its future development product iteration, and the competitive strengths.

研發費用從2022年同期的人民幣9,020萬元減少至2023年下半年的人民幣5,560萬元或790萬美元。公司預計將繼續在研發方面進行大量投資，以支持其未來的開發產品迭代和競爭優勢。

Loss from operations was RMB124.4 million or USD17.6 million for the second half of 2023 compared with loss from operations of RMB86.9 million for the same period of 2022. Net loss was RMB120 million or the USD16.9 million for the second half of 2023 compared with RMB80.3 million for the same period of 2022.

2023 年下半年營運虧損為人民幣 1.244 億元人民幣（1,760 萬美元），而 2022 年同期經營虧損為人民幣 8,690 萬元。為人民幣8,030 萬元，而2022 年同期為人民幣8,030 萬元。

Basic and diluted loss per share was RMB1.91 or USD0.27 for the second half of 2023 compared with RMB1.47 for the same period of 2022. As of December 31, 2023, we had a cash and cash equivalents of RMB48.2 million or USD6.8 million compared with RMB87.8 million as of December of 31, 2022.

2023年下半年每股基本及攤薄虧損為人民幣1.91元或0.27美元，而2022年同期為人民幣1.47元。 31 日，人民幣8,780 萬元，即680 萬美元。

With the support of favorable policies, we will remain our dedication to offering foundational service for the development of the web 3.0 industrial. Moving forward, we will continue to move with the market tailwinds and step up R&D efforts to enhance our portfolio and navigate through the challenges at the current stage. We are confident in our ability to enhance shareholder value and sustain business growth.

在政策利好支持下，我們將持續致力於為Web 3.0產業發展提供基礎服務。展望未來，我們將持續順應市場潮流，加強研發力度，增強我們的產品組合，並應對現階段的挑戰。我們對提高股東價值和維持業務成長的能力充滿信心。

Thank you for your support and trust along the way. Now I would like to turn the call over to the operator for question-and-answer session.

感謝您一路以來的支持與信任。現在我想將電話轉接給接線員進行問答。

Thank you. (Operator Instructions)

謝謝。 （操作員說明）

[Oscar Tracy], private investor.

[奧斯卡特雷西]，私人投資者。

Hi, thank you for your presentation. Could you explain the reasons behind your underperformed trade value and also your stock price? Thank you.

你好，謝謝你的介紹。您能否解釋一下您的交易價值和股價表現不佳背後的原因？謝謝。

(spoken in Chinese)

(用中文說)

(interpreted) The primary reason is that our top priority at the current stage, more than anything else, is given to developing our core value and building up our products. Besides, while the market is picking up, the lags in stock price and in secondary market underplay our performance. We believe that as long as we remain focused on our product quality, we will have an explosive growth in the future with the booming development of web 3.0. Thank you.

（解讀）最主要的原因是我們現階段的首要任務是發展我們的核心價值，打造我們的產品。此外，在市場回升的同時，股價和二級市場的滯後性也削弱了我們的表現。我們相信，只要我們始終專注於產品品質，未來我們一定會隨著Web 3.0的蓬勃發展而實現爆炸性成長。謝謝。

[Eva Karen], private investor.

[伊娃·凱倫]，私人投資者。

Thanks, management team. Could you please explain the reasons behind the decline of the company's performance in the second half of 2023 compared with the same period of 2022? Thank you.

謝謝，管理團隊。請您解釋一下公司2023年下半年業績較2022年同期下滑的原因？謝謝。

(spoken in Chinese)

(用中文說)

(interpreted) It takes time for market dynamics to become actual customer demand,so the positive market trend wasn't well reflected in the sales during the second half of the year. Additionally, although our new product has been showing strong trends, but it didn't significantly contribute to the second half performance as it was launched in the fourth quarter. We believe it will become a substantial growth driver. Furthermore, many of our new products are still in the pipeline and waiting for launch, which have not contributed to our revenue of second half 2023.

（解讀）市場動態轉化為實際的客戶需求需要一定的時間，因此下半年的銷售情況並沒有很好地反映市場的積極態勢。此外，雖然我們的新產品一直表現出強勁的趨勢，但由於它是在第四季度推出的，因此對下半年業績的貢獻不大。我們相信它將成為一個重要的成長動力。此外，我們的許多新產品仍在研發中並等待推出，這對我們2023年下半年的收入沒有貢獻。

[Kathleen Smith], private investor.

[凱瑟琳史密斯]，私人投資者。

Hi, there. What are the company's expectations for the market and also the financial performance in 2024? Thank you.

你好呀。公司對2024年的市場和財務表現有何預期？謝謝。

(spoken in Chinese)

(用中文說)

(interpreted) As overall market is improving, we anticipate an increase in sales for both V series and B series products in 2024 compared to 2023. The new product lines such as 3D printing is going strong currently,so we expect a marked increase in sales as well. Thank you.

（解讀）隨著整體市場向好，我們預計2024年V系列和B系列產品的銷量將較2023年有所增長。謝謝。

[Helena Melvin], private investor.

[海倫娜·梅爾文]，私人投資者。

My question is, does the company have any initiatives to promote brand globally?

我的問題是，公司有沒有在全球推廣品牌的舉措？

(spoken in Chinese)

(用中文說)

(interpreted) Our management team has visited other countries and regions and engage in valuable discussions with local industry experts and potential partners which serve as great opportunities for expanding our global market presence. Meanwhile, we continuously participate in exhibitions and events worldwide to promote our products and services. That's all. Thank you.

（解說）我們的管理團隊訪問了其他國家和地區，與當地行業專家和潛在合作夥伴進行了寶貴的討論，這為我們擴大全球市場份額提供了良好的機會。同時，我們不斷參與世界各地的展覽和活動，以推廣我們的產品和服務。就這樣。謝謝。

(Operator Instructions)

（操作員說明）

[Rebecca Allison], private investor.

[麗貝卡·艾利森]，私人投資者。

May I know what are the considerations behind the company's agreement with shareholder to convert loans into ordinary shares, which I believe was signed in September last year?

請問公司與股東將貸款轉換為普通股的協議（我相信是在去年9月簽署的）背後的考量是什麼？

(spoken in Chinese)

(用中文說)

(interpreted) Our major shareholders both have confidence in the future of Nano Labs and the whole industry. Therefore, we are willing to lend to the company and convert it into equity at a fair market price. I believe the move is a strong message of confidence and assurance, which will contribute to the company's further development in 2024 and beyond. Thank you.

（解讀）我們的大股東都對Nano Labs以及整個產業的未來充滿信心。因此，我們願意向該公司貸款，並以公平的市場價格將其轉換為股權。我相信此舉是一個強烈的信心和保證訊息，將有助於公司在2024年及以後的進一步發展。謝謝。

Thank you. That concludes the question-and-answer session. Let me turn the call over to Mr. Chen for closing remarks.

謝謝。問答環節到此結束。我現在請陳先生致閉幕詞。

Okay, Mr. Chen, please go ahead.

好的，陳先生，請講。

(interpreted) Thank you very much for joining the conference call. If you have any questions, please contact us through e-mail at ir@nano.cn and reach our IR counsel, Ascent Investor Relations at investors@ascent-ir.com. Management will respond to your questions as soon as possible. We appreciate your interest and support in Nano Labs and look forward to speaking with you again next time.

（翻譯）非常感謝您參加電話會議。如果您有任何疑問，請透過電子郵件與我們聯繫：ir@nano.cn，並聯絡我們的投資者關係顧問 Ascent 投資者關係部：investors@ascent-ir.com。管理層將盡快回覆您的問題。我們感謝您對 Nano Labs 的興趣和支持，並期待下次與您再次交談。

Thank you, again, for attending Nano Lab's second half of 2023 earnings conference call. This concludes our call for today, and we thank you for listening. Goodbye.

再次感謝您參加 Nano Lab 2023 年下半年收益電話會議。我們今天的電話會議到此結束，感謝您的聆聽。再見。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。