Nano Labs Ltd

Thank you for standing by, and welcome to the NanoLabs Limited second half 2025 earnings conference call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. Kong, CEO of the company. Please go ahead. Mr. Kong, you can now begin your presentation.

Okay. Thank you, operator, and everyone for joining Nano Labs' second half of 2025 earnings conference call today.

On our course today, I will provide an overview of our recent development and our strategic initiatives going forward.

In 2020, Web3.0 has shown a growing trend in the industry. With the continuous improvement of the global encrypted market environment, including the continuous improvement of data asset infrastructure and the increase in market participation, the encrypted market and Web3.0 have brought new growth and opportunities.

In the year 2025, the Web3 industry experienced robust growth with the continued improvement of the global crypto market environment, including enhanced crypto assets, infrastructure, and increasing market participation. The crypto market and Web3-related sectors entered a new phase of growth and opportunity.

After a comprehensive internal evaluation of the long-term development prospects of BNB, we decided We will continue to promote BNB equipment development. Since March 31, 2025, the company has produced 36,662 BNB, and BNB has 3.338 BNB of revenue-based assets. By steadily increasing the size of BNB, we have not only optimized the number of assets, but also laid the foundation for future business expansion and ecological cooperation.

Following a comprehensive and prudent internal assessment of the strategic value and long-term perspectives of BNB, we initiated and continued to advance to the build-out of our BNB reserves. As of December 31, 2025, the company held a total of 126,662 BNBs, along with a receivable collateral of $3,302. 38 BNB by steadily increasing our BNB holdings. We have optimized our crypto assets allocation and created favorable conditions for the future business expansion and ecosystem collaboration.

资本运作方面,公司于2025年顺利完成两轮融资,为战略转型数字资产储备扩张与新业务方向的探索提供了有力支持。

In terms of capital operations, we successfully completed two rounds of financing in 2025, providing strong support for our strategic transformation, expansion of our crypto asset reserves, and the exploration of new business directions.

In March 2020, we officially launched a new product, Apollo Club PCA1 Mini.

This product is supported by OpenCloud AI Agents system, in the future, we also plan to continue to launch CloudOS system and more hardware products to further expand AI Agents' full chain of ecological service capabilities. At the same time, to further enhance the value of shareholders and increase the confidence of the management team of the company's long-term development, we announced in October 2025 that we will make a return on shares of up to $25 million. At present, the plan has been launched and is expected to be steadily promoted in the long term. Looking forward to the future, we will continue to pay attention to

In March 2026, we officially launched our next generation product, the iCloud Cloud PC01 Mini, designed to support the open cloud AI agent system. Going forward, we plan to introduce the cloud OS system and additional hardware products to further expand our Foreseq ecosystem services for AI agents. Meanwhile, to enhance shareholder value and demonstrate management's confidence in the company's long-term development, we announced a share repurchase program of up to $25 million in October 2025. The program has commenced and is expected to be implemented steadily over the long time. Looking ahead, we will continue to closely monitor industry trends and market dynamics. While maintaining stable operations, we will further advance our crypto assets strategic reserves and actively explore broader opportunities with the AI agent ecosystem.

Thank you for your support and interest.

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

Thank you, Mr. Kong Jianping. Good morning, everyone. On behalf of the management team, I would like to introduce the financial performance of the second half of 2025. In the second half of 2025, the company's net income was RMB1,870 million or $2.7 million. Last year, it was RMB1,590 million at the same time. The net income growth grew by 18.1%. The growth was mainly due to the increase in sales of Apollo V7 products. In the second half of 2025, The net loss is 2,910,000 yuan or $1,110,000. Last year, the net profit was 1,160,000 yuan. In the second half of 2025, the company's annual income cost was 4,780,000 yuan or $6,800,000. In 2020, the net profit was 4,300,000 yuan. The main reason is that the cost of the city is reduced and the minimum wage is deducted.

Thank you, Ms. Kong. Good morning, everyone. On behalf of the management team, I will provide a brief financial overview of the second half of 2025. In the second half of 2025, our net revenue was RMB 18.7 million, equal to 2.7 million US dollar, compared to RMB 50.9 million in the same period last year, increased of 18.1%. This increase was primarily due to the increase in shelf volume of the Apollo 5 series product. We recorded a gross loss of RMB 29.1 million, equal to 4.1 million US dollar for the second half of 2025, compared to a gross profit of RMB 11.6 million in the same period of 2024. Cost of revenues for the second half of fiscal year of 2025 were RMB 47.8 million equals to 6.8 US dollar million compared to RMB 4.3 million in the same period of 2024. The decline was mainly due to the write-downs of inventories and value-added tax recoverable.

In 2025, the total operating income of the next half of the year will rise by 233.9%. 8,990,000 yuan or 1,280,000 yuan. In the same period in 2020, the revenue was 6,710,000 yuan. In the second half of 2025, the company's sales cost decreased by 4.8 million yuan in the same period in 2020 to 56.2 percent. The main reason is the reduction in employee salary.

Total operating income for the second half of fiscal year 2025 increased by 233.9% to RMB 89.9 million, equal to 12.8 million U.S. dollars, increased from RMB 67.1 million in the same period of 2024. Selling and marketing expenses dropped by 56.2%. to RMB 2.1 million, equal to 0.3 million US dollar, compared to RMB 4.8 million in the same period of 2024. This decrease was mainly due to the decrease in employee salary expenses.

In the second half of 2025, the management income will increase by 30.3% to RMB 25.4 million in the same period of 2020. 3,310,000 yuan or 4,700,000 yuan. The increase is mainly due to the increase in professional service fees.

General and administrative expenses increased by 30.3% to RMB 33.1 million, equal to 4.7 million US dollars for the second half of 2025, from RMB 25.4 million for the same period of 2024, The increase in general and administrative expenses was primarily due to the increase in professional service fees.

研發費用較2024年下半產業公司2,120萬元減少了76.9%, 至2025年同期的人民幣490萬元或70萬美元。 研發費用的減少主要原因是工資支出材料費和設備費用的減少。

Research and development expenses decreased by 76.9% to RMB 4.9 million, equal to $0.7 million for the second half of 2025, from RMB 21.2 million for the same period of 2024. The decrease in research and development expenses was primarily due to the decrease in salary expenses, material fees, and equipment fees.

By the end of 2025, the operating profit will be 60.8 million yuan or 8.7 million yuan. By the end of 2025, the operating profit will be 55.6 million yuan. By the end of 2025, the operating profit will be 38.2 million yuan or 5.4 million yuan. By the end of 2025, the operating profit will be 1.7 million yuan or 5.4 million yuan. the net net net net net net net net net In the same period of 2020, the average share of the US share of the common share of the same period of the same period of the same period of the same period of the same period of the same period of the same period of

Profit from operations was RMB 60.8 million, equal to 8.7 million US dollar for the second half of 2025, compared with loss from operations of RMB 55.6 million for the same period of 2024. Other income was RMB 38.2 million, equal to 5.4 million US dollar for the second half of 2025. compared to RMB 1.7 million for the same period of 2024. The change was due to the Binance launch port and the airdrop income for BNB holders and income for crypto investment products. Net income was RMB 137.7 million, equal to 19.6 million US dollar for the second half of 2025, compared to a net loss of RMB 60.3 million. in the same period of 2024. Basic and diluted earnings per share was RMB 6.2, equals to 0.9 US dollar for the second half of 2025, compared to basic and diluted loss per share of RMB 6 in the same period of 2024. As of December 31, 2025, The company had a cash and cash equivalence of RMB 8.5 million, equals to 1.2 million US dollar, compared with RMB 32.84 million as of December 31, 2024.

We believe in the strategy and confidence of our future business development. We will continue to play our technical advantage, grab the development opportunity, promote long-term growth, and create more value for shareholders.

We remain confident in our business strategy and ability to execute it. We will continue to leverage the strength 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 questions and answer session.

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 are on a speakerphone, please pick up your handset to ask your question. The first question today comes from Irina Rubano with a private investor. Please go ahead.

Hi. Thank you for the presentation. My question is, what is the company's long-term strategic plan regarding its BNB holdings?

想请问一下公司目前持有BNB的长期战略计划是什么?

这个问题问孔总。

I'm sorry, I just made a mistake. We are evaluating the development trend of digital assets and the long-term development potential of BNB. The company will make BNB the core digital asset strategic reserve. From a long-term perspective, the company's plan continues to maintain and stabilize BNB at the right time to maintain a relatively stable BNB reserve scale. This strategy will help to improve the configuration ability of the company's digital assets.

OK, after comprehensively evaluating the development trends of crypto assets and the long-term potential of BNB, our company has designated BNB as a core component of its crypto asset strategic reserves. Over the long term, we plan to continue holding BNB and to gradually increase our holding at appropriate times, maintaining a relatively stable reserve level. This strategy is expected to enhance the company's crypto asset allocation capabilities while strengthening synergies with the Web3 ecosystem, thereby providing a solid asset foundation for the company's long-term strategic development.

Thank you.

Next question comes from Alfred Wu, a private investor. Please go ahead.

Alfred, your line is open. You may ask your question. Perhaps your line is muted, Alfred. Please ask your question.

We appear to have lost connection with Alfred. The next question comes from Claire Harrison, a private investor. Please go ahead.

Okay. Thank you, Amanda. I have some questions. My first question is, why did the company launch a share of the right purchase program?

想问一下公司为什么推出股票回购计划呢?

公司于2025年10月宣布最高达2500万美元的股票回购计划, 主要基于SACA的一提升股东价值,为股东带来长期回报。 Thank you. In October 2025, we announced a share repurchase program of up to US$25 million,

based on the following considerations. First, to enhance shareholder value and deliver long-term returns. Second, to demonstrate management's positive outlook on the company's long-term development. Third, to signal confidence in the company's long-term growth and operations to the capital markets. The company will implement the repurchase program in a steady and disciplined manner over time. taking into account market conditions and capital allocation plans. Thank you.

Thank you. And my second question, what was the rationale behind the launch of the iPolo Cloud PC A1 Mini product?

想问一下公司目前推出 iPolo Cloud PC A1 Mini 产品的原因和契机是什么呢?

As you all know, the most popular concept of AI right now is Open Cloud. Apollo PC A1 Mini is a new generation of AI agent hardware product launched by the company, which is used to support Open Cloud AI agent system. The company believes that AI agent is likely to become an important form of next-generation smart application, so it chooses to pre-set up relevant infrastructure. Currently, the company has quickly gained a high brand reputation in the market. Product sales and ecological layout are in steady progress. Thank you.

As you may know, one of the most prominent concepts in the AI space today is Open Cloud. The Apollo Cloud PCA1 Mini is the company's next-generation AI agent well product, product designed to support the Open Cloud AI agent system. We believe that AI agents are likely to become a key form of next-generation intelligent applications and have, therefore, chosen to proactively invest in the related infrastructure. Our company has already gained significant brand visibility in the market with the product sales and ecosystem development progressing steadily. Going forward, We plan to launch the cloud OS system and additional agent hardware products to support a fortune AI agent ecosystem. Thank you.

The next question comes from Ella Rosenblatt, a private investor. Please go ahead.

Hi, management team. Thank you for your presentation. So my question is, what are the company's key long-term business development directions?

下一个问题,请问公司未来长期业务发展的主要方向是什么?

未来公司的业务发展将围绕两个主要方向展开。 一,数字资产战略布局,推进以BNB为核心的数字资产战略储备。 在市场条件合适的情况下,稳步扩大资产的配置。 二, Our company's future business development will focus on two primary directions.

crypto asset reserve strategy, continuing to advance its BNB-centered crypto asset reserve strategy and the steadily expanding asset allocation when market conditions are favorable. Second, AI agent ecosystem development, advancing the launch and the commercialization of hardware products such as the Apollo Cloud PC, introducing the Cloud OS system and building an AI agent application and the service ecosystem to capture opportunities arising from the transition from Web3 to Web4.

Thank you for your question. Please go ahead.

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

感谢 非常感谢各位参加本次电话会议 如果您有任何问题 请通过电子邮件联系我们 IR at nano.cn 或联系我们的IR顾问 Assistant Investor Relations 通过邮箱 investorassistantir.com 管理层将尽快 Thank you very much for joining this conference call.

If you have any questions, please contact us through email at ir.nano.cn or reach our IR Council, Ascent Investor Relations at tina.xiao.ascentir.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 NanoLabs' second half of 2025 earnings conference call. This concludes our call today, and we thank you all for your listening in. Goodbye.