Nano Labs Ltd

Thank you for standing by, and welcome to the Nano Labs 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. 感谢主持人和所有参加今天Nano Labs 2025年下半年财报电话会议的朋友。 在我们今天的电话会议上,我将概述公司近期发展以及公司未来的战略指数。 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, the global market has shown a positive development in the global market. With the continuous improvement of the global domestic market environment, including the increase in the number of participants in the market, the increase in the number of participants in the domestic market, and the growth and opportunity of new trends related to the global market,

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 the BNB's long-term development prospects and comprehensive internal evaluation, we decided and continue to promote BNB equipment development. Since March 31, 2025, the company has 36,662 BNB, 3,300 BNB, and 38 BNB of revenue-based assets. By steadily increasing the scale of BNB, we have not only optimized the configuration of digital 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 VNB, we initiated and continue to advance to the build-out of our VNB reserves. As of December 31, 2025, the company held a total of 126,662 VNBs, along with a receivable collateral of $3,350. 38 BNB by daily increasing our BNB holdings. We have optimized our crypto assets allocation and created favorable conditions for the future business expansion and ecosystem collaboration.

在资本运作方面,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 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 support AI Agents' full network of ecological service capabilities. At the same time, to further enhance the value of shareholders and increase the confidence of the management team in the long-term development of the company, we announced in October 2025 the highest $25 million stock return plan. Currently, 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 forest 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. I will represent the management team to introduce the financial performance in the second half of 2025. In the second half of 2025, the company's net income was RMB1,870,000 or RMB2,770,000. Last year, it was RMB1,590,000 at the same time, and it increased by 18.1%. The increase in net income is mainly due to the increase in sales of Apollo V series products. In the second half of 2025, The net profit 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 profit was 4,780,000 yuan or $6,800,000. In 2020, the net profit was 4,300,000 yuan. The main reason is the reduction of the stock market and the reduction of the stock market tax.

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 U.S. dollars, compared to RMB 50.9 million in the same period last year, increased of 18.1 percent. This increase increased 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.

2025年下半财年的总营业收入上升233.9% RMB 89.9 million or USD 12.8 million. In 2020, the same period, the operating income was RMB 67.1 million. In the second half of 2025, the company's sales cost fell by RMB 4.8 million in the same period in 2020. It fell by 56.2%. RMB 2.1 million or USD 30 million. 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, 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.

General and administrative expenses increased by 30.3% to RMB $33.1 million, equal to $4.7 million 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.

研发费用较2024年下半财前工资2,120万元减少了76.9% 至2025年同期的人民币490万元或70万美元 研发费用的减少主要原因是工资支出材料费和设备费用的减少

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.

In the second half of 2025, the operating profit will be 60.8 million yuan or 8.7 million yuan. In the same period of 2020, the operating loss will be 55.6 million yuan. In the second half of 2025, the operating loss will be 38.2 million yuan or 5.4 million yuan. In the same period of 2020, the operating loss will be 170 million yuan. The main reason is that the exchange rate The net profit earned by the consumer is the net profit earned by the consumer. The net profit earned by the consumer is the net profit earned by the consumer. The net profit earned by the consumer is the net profit earned by In the same period of 2020, the average share of the US dollar and the U.S. dollar was 6.0 yuan. As of December 31, 2025, the company's cash and cash balance was 8.5 million yuan or 1.2 million yuan. As of December 31, 2025, the figure was 32.7 million yuan.

Profit from operations was RMB 60.8 million, equals to $8.7 million 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, equals to $5.4 million 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 for the second half of 2025, compared to a net loss of RMB 60.3%. in the same period of 2024. Basic and diluted earnings per share was RMB 6.2, equals to $0.9 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 cash and cash equivalents 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 prices. Now I will call

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 Rabano 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是有BNB的长期战略计划是什么? 这个问题问孔总。

I'm sorry for interrupting. We are evaluating the trend of digital asset development and the long-term development potential of BNB. The company will use BNB as the core digital asset strategy. From a long-term point of view, the company's plan continues to maintain and stabilize BNB at the right time to maintain a relatively stable BNB storage 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, Magnum. I have some questions. My first question is, why did the company launch a share of direct 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 25 million U.S.

dollars. 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 iPod Cloud PC A1 Mini product?

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

As you all know, the most popular concept for AI is Open Cloud. Apollo PC A1 Mini is a new generation of AI agent hardware released by the company, and it supports the 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 already announced that it has a very high brand chain 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. 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,资产战略布局,推进以BNP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,

First, crypto asset reserve strategy, continuing to advance its BNB-centered crypto asset reserve strategy and the steadily expanding asset allocation where 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, I'm building an AI agent application and a service ecosystem to capture opportunities arriving 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AR顾问。 Assistant Investor Relations通过邮箱。 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 at investorrelations at tina.xiao. at 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.