Nano Labs Ltd

Ladies and gentlemen, thank you for standing by. Welcome to NanoLab's first half of 2025 earnings conference call. During today's call, all participants will be in listen-only mode. This conference is being recorded today, Friday, August 15th, 2025. Joining us today from NanoLabs are the company's chairman and chief executive officer, Mr. Jingping 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. 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 U.S. Private Securities Litigation Reform Act of 1995. 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. During today's call, Mr. Kong and Mr. Chen will deliver their remarks in Chinese and the company's representatives will provide corresponding English translations. 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.

Mr. Kong, please go ahead.

Thank you, operator, and everyone for joining NanoLab's first half of 2025 earnings conference call today. On our call today, I will provide an overview of our recent development and our strategic initiatives in the future.

In 2025, the company will face a major transformation. Facing the new changes in the industry pattern and the arrival of new market trends, we will focus our energy and resources to fully expand our digital asset strategy reserves, so that the market can embrace digital currency transactions and encrypted currency reserves 我们果断决定第一步将加密货币储备集中于BNB 开启全新发展阶段 截至本次财报电话会议 公司已经持有BNB超过128,000枚 同时基于现有的矿机业务 公司也在稳定现有业务的基础下 不断寻求新的市场机会

The year 2025 marks a major transformation for the company as in light of the evolving industrial landscape and the onset of a new market circle. We focus our resources and efforts on expanding our crypto assets strategic reserve as the market continues to embrace cryptocurrency transactions and cryptocurrency reserves. We have taken the decisive first step of concentrating our cryptocurrency reserve in BNB. ensuring a new stage of development. As of the date of this earnings conference call, the company holds over 128,000 BNB. Meanwhile, building on our existing mining machine business, we continue to explore new market opportunities while maintaining stability in our current operations.

In the first half of 2025, we will start a series of decisive strategic changes. 我们加快了在加密货币领域的扩张与合作, 与此同时我们积极采取进取而又省胜的方式, 通过多种途径扩大加密货币投资与储备, 包括通过融资资进和自有资金, 不断扩大加密货币的战略储备, 战略入股BNB储备公司, 持续务实BNB战略储备布局, 同期我们还进军放心外的, We believe that these measures will create a long-term prosperity for value-added companies in the interest-related field.

Reviewing the first half of 2025, we have undertaken decisive and strategic transformations since the beginning of this year. We accelerated our expansion and collaboration in the cryptocurrency field. Meanwhile, we undertook ambitious yet prudent initiatives to develop cryptocurrency investments and reserves through various approaches, including the continuous expansion of our strategic cryptocurrency reserves using both financing and proprietary funds, as well as the strategic equity investment in CEA, a BNB reserve company, hereby solidifying our BNB strategic reserve layout. At the same time, we expanded into the emerging stablecoin sectors as part of our diversified Web3 Looking forward, we remain vigilant for emerging opportunities and the vast potential for innovation in the Web3 space and the AI-driven transformative era. Through the visionary and insightful strategic planning, along with decisive and consistent execution, we believe these efforts will generate substantial value for our stakeholders and drive long-term prosperity for the company.

Thank you for your support and trust.

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

Thank you, Mr. Kong. Good morning, everyone. On behalf of the management team, I would like to introduce the financial situation in the first half of 2025. In the first half of 2025, the company's operating income was 8.28 million yuan, or $1.16 million. In the same period last year, it was 24.74 million yuan. The main reason for the drop in operating income is that the sales of Ebola-like products have decreased. In the first half of 2025, 1,071,000 yuan or 1,500,000 US dollars. Last year, it was 3,000,000 yuan. In the first half of 2025, the company's revenue was 1,899,000 yuan or 2,650,000 yuan. In 2020, it was 2,471,000 yuan. The main reason is the decline in sales, the loss of goods, and the loss of tax.

Thank you, Mr. Kun. Good morning, everyone. On behalf of the management team, I will provide a brief financial overview of the first half of 2025. In the first half of 2025, our net revenue was RMB 8.28 million, U.S. dollar 1.16 million, compared to RMB 24.74 million in the same period last year. The decline was primarily due to the decreased sales volume of the Apollo V series product. We recorded a gross loss of RMB 10.71 million, U.S. dollar 1.5 million for the first half of 2025, compared to a gross profit of RMB 30,000 in the same period of 2024. Cost of revenue for the first half of fiscal year 2025 were RMB 18.99 million, U.S. dollar $2.65 million compared to R&B $24.71 million in the same period of 2024. The decline was mainly due to the decrease in sales volume and write-down of inventory and value-added tax recoverable.

In 2025, the total revenue of the last 10 years decreased by 53.5%. RMB 2733 million or $382 million. In the same period in 2020, RMB 5872 million. In the same period in 2025, the company's sales cost decreased by RMB 433 million in the same period in 2020 to 39.6%. RMB 262 million or $37 million. The main reason is the reduction in sales allowance and salary.

Total operating expenses for the first half of fiscal year 2025 decreased by 53.5% to RMB 27.33 million, US dollar 3.82 million, down from RMB 58.72 million in the same period of 2024. Selling and marketing expenses dropped by 39.6% to RMB 2.62 million, U.S. dollar 0.37 million compared to RMB 4.33 million in the same period of 2024. This decrease was mainly due to the decrease in sales commission and salaries.

二零二五年上半成年,管理费用交二零二十年同期的人民币2545万元下降了15.4%, 是人民币2154万元或301万美元。 管理费用下降主要是由于服务费用以及员工薪酬支出的减少。 General and administrative decreased by 15.4% to RMB 21.54 million, U.S.

dollar 3.01 million for the first half of 2025. From RMB 25.45 million for the same period of 2024, the decrease in general and administrative expenses were primarily due to the decrease in professional fees and employee salary expenses.

研发费用从2024年上百台元的人民币2893万元减少了89.1%。 research and development expenses decreased by 89.1% to RMB 3.16 million,

US dollar $0.44 million for the first half of 2025, from RMB $28.93 million for the same period of 2024. The decrease in research and development expenses, including salary expenses, design fee, service fee, material cost, et cetera, was mainly due to the strategy of adjustment in research and development activities in 2025.

In the last 100 years of 2025, the operating profit was 3,803,000 yuan or 5,310,000 yuan. In the same period of 2024, the operating profit was 5,869,000 yuan. In the last 100 years of 2025, the operating profit was 1,178,000 yuan or 1,650,000 yuan. In the same period of 2024, the operating profit was 5,915,000 yuan. In the last 100 years of 2025, the operating profit was 5,915,000 yuan. 0.43 yuan or 0.06 US dollars. In 2020, the same period, the average share of the U.S. share of the U.S. share of the U.S. share of the U.S. share of the U.S. share of the U.S.

Loss from operations was RMB 38.03 million, US dollar 5.31 million for the first half of 2025, compared with loss from operations of RMB 58.69 million for the same period of 2024. Net loss was RMB 11.78 million, US dollar 1.65 million for the first half of 2025. compared to a net loss of RMB 59.15 million in the same period of 2024. Basic and diluted loss per share was RMB 0.43, US dollar 0.06 for the first half of 2025 compared to basic and diluted loss per share of RMB 8.46 in the same period of 2024. As of June 30, 2025, the company had cash and cash equivalents of RMB $363.44 million, U.S. dollars $50.77 million, compared with RMB $32.43 million as of December 31, 2024.

We are committed to our future business development strategy and information ability. We will continue to play our technical advantage. We remain confident in our business strategies and ability to execute it.

We will continue to leverage the strengths of our technology to capture development opportunities, drive long-term growth, and create additional value for our shareholders. Now I would like to turn the call over to the operator for question and answer season.

Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Claire Harrison. Please go ahead.

Thank you, Megumin team. My question is, why has the company chosen BNB as its core reserve asset? Thank you.

Why did the company choose BNB as its core reserve asset?

BNB is one of the most representative encrypted currencies. It does not only have a high-level active ecosystem, but also causes model and platform value growth.

BNB as one of the most representative crypto assets not only has a highly active ecosystem but also demonstrates outstanding long-term growth potential and resilience. supported by its model and platform value. Therefore, we hold BNB as a key cryptocurrency for our core strategic objective. Thanks.

Your next question comes from Armstrong Lu.

Hello. My question is, if my director is holding BNB, what parameters will company take to strengthen its statutory reserves?

Thank you. 公司除了持有BNB以外,其他还通过哪些方式加强战略储备?

我们会采用多元手段推动BNB战略储备计划,包括控股或者参股BNB战略储备公司,以及投资具备强生态协同能力的企业。

We will adopt diversified approaches to advance our BNB strategic reserve plan, including acquiring, controlling, or minority stakes in BNB strategic reserve companies, as well as investing in enterprises with strong ecosystem synergies, these diversified measures will help us build a more stable strategic layout. Thanks.

Your next question comes from Ella Rosenblatt.

Hi. My question is, will the company consider reserving other cryptocurrencies or will it focus solely on BNB?

to buy other encrypted currencies, or is it just focused on BNB?

Currently, the company uses BNB as the core storage asset. It is based on the maturity of the ecosystem, the stability and growth of the asset, and other comprehensive aspects to consider. But we are also continuing to pay attention to other strategic values and eco-supported encrypted currencies. In the future, we will not rule out the creation of a small number of multiple assets at the right time and at the right time, to optimize the asset combination and improve the energy-saving ability.

Currently, the company's focus on BNB as its core reserve assets is based on a comprehensive assessment of BNB ecosystem maturity, asset stability, and long-term growth potential. However, we will continue to monitor other crypto assets with strategic value and ecosystem support. In the future, we do not rule out allocating a small portion of diversified assets at the right time and in well-defined scenarios to optimize our portfolio and enhance resilience against market circles. Overall, though, our company will remain centered on BNB to maintain strategic focus and expansion stress. Thanks.

Our next question comes from Irina Rabanov.

Hi, thank you. Does the company have any financing plans for 2025? And what are the considerations behind such plans?

公司在2025年有融资计划吗?融资的考虑是什么?

公司在2025年已启动并完成了部分战略融资。 此次融资的主要目的是为了支持BNB战略储备规模的持续扩张。 The company initiatives and partially complete strategy financing in 2025.

The primary purpose of this financing is to support the continued expansion of our BNB strategic reserve scale. Going forward, we will continue to consider various financing options to further support the growth of our BNB strategy reserve plan, thereby ensuring better execution of our Web3-related business initiatives. Thank you.

And that concludes the question and answer session. Let me turn the call over to Mr. Chen for closing remarks.

Thank you very much for attending this phone call. If you have any questions, please contact us via e-mail at ir.nano.cn to contact us at ir.nano.cn to contact us at ir.nano.cn to contact us at ir.nano.cn to contact us at ir.nano.cn

Thank you very much for joining this conference call. If you have any questions, please contact us through email at ir.atnano.cn or reach our IR Council as an investor relations at t9.com. Management will respond to your questions as soon as possible. We appreciate your interest and support in NanoLabs and look forward to speaking with you again next time.

Thank you again for attending NanoLab's first half of 2025 earnings conference call. This concludes our call for today, and we thank you all for listening in. Goodbye.

Goodbye.