Nano Labs Ltd

Ladies and gentlemen, thank you for standing by. Welcome to Nano Labs' first half of 2026 earnings conference call. During today's call, all participants will be in listen-only mode. This conference is being recorded today, Friday 28, 2026. 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 and Mr. Chen will show 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 representative 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.

Thank you, operator and everyone for joining Nano Labs' first half of 2026 conference call today. On our call today, I will provide an overview of our recent developments and our strategic initiatives going forward. In the first half of 2026, as the Web3 industry continues to mature, the global real estate market has also undergone a profound structural change. In this context, we can clearly see the opportunity of AI and Web3 deep integration in the system. Not only will it be able to reproduce blockchain infrastructure, but it is also innovating new application scenarios and business models. Based on this judgment, NanoLabs launched the new generation of products in the first half of this year, Apollo Cloud PC A1 Mini, and continues to promote the construction of the Open Cloud ecosystem.

In the first half of 2026, as the Web3 industry continued to mature, the global digital asset market underwent profound structural evolution. Against this backdrop, we increasingly recognized the systematic opportunities arising from the deep integration of artificial intelligence and Web3. This convergence not only has the potential to reshape blockchain infrastructure, but also to unlock new application scenarios and business models. Guided by this perspective, NanoLabs launched its next-generation product, the Apollo Cloud PC A1 Mini, during the first half of the year and continued to advance the development of open cloud ecosystem, spanning smart devices. Operating systems, hardware, software, and application layers.

公司持续落实数字资产战略储备,基于对数字资产市场及更广泛区块链生产系统的长期研判。 管理层人家数字资产正式纳入公司资本配置框架,作为战略性组成部分,截止本中期报告发布之日。 The company maintains a long-term preparation of 70,000 BMEs. The company believes that the efficient and efficient digital asset acquisition strategy is not only conducive to strengthening the stability of asset representatives, but will also provide more solid support for ecological cooperation and a greater flexibility for the future strategic layout. At the same time, to further enhance the value of shareholders and highlight the confidence of the management team in the long-term development of the company, we will continue to advance to the highest level announced in October 2025, and other companies in the future.

The company continues to implement its digital asset reserve strategy. Based on a long-term assessment of the digital asset market and the broader blockchain ecosystem, management has formally incorporated digital assets into the company's capital allocation framework as a strategic component. As of the date of this interim report, The company held long-term reserves of 30,000 BNB. The company believes that a prudent and disciplined approach to digital asset allocation will not only help strengthen its balance sheet, but also provide greater support for ecosystem collaboration and enhance flexibility for future strategic planning. Meanwhile, to further enhance shareholder value and demonstrate management's confidence in the company's long-term development, the company continues to advance its share repurchase program of up to US$25 million. Originally announced in October 2025, as of August 26, the company had completed repurchase of Class A ordinary shares for total consideration. , and will continue to advance the program in a steady and disciplined manner over the long term. Looking forward, Nanolabs will continue to explore opportunities arising from the convergence of AI, Web3, and next-generation computing infrastructure through continuous technological innovation, deeper strategic partnerships, and ecosystem development. The company aims to strengthen its technological capabilities, expand its strategic footprint, and create sustainable long-term value for shareholders.

感谢各位一直以来对本公司的信任和支持 接下来我将把电话转给我们的首席财务官陈斌先生 有他对我们的财务业绩进行更详细的阐述 陈斌先生请您继续

Thank you for your support and trust. Next, I will turn the call over to our chief financial officer, Mr. Chen, for a closer view of our financial results. Mr. Chen, please go ahead.

Mr. Chen, good morning. On behalf of the management team, I would like to introduce the financial performance of the first half of the fiscal year in 2026. In the first half of the fiscal year in 2026, the company's net income was 278,000 yuan or $400,000. Last year, it was 828,000 yuan. The decline in sales is mainly due to the reduction in the sales of Apple's VCD products. In the first half of 2026, the net loss was 585,000 yuan or 86,000 yuan. Last year, the net loss was 1071,000 yuan. In the first half of 2026, the company's operating cost was 863,000 yuan or 126,000 yuan. In 2025, the net loss was 1899,000 yuan. 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 2026. In the first half of 2026, our net value was RMB 2.8 million, U.S. dollar 0.4 million, compared to RMB 8.3 million in the same period last year. This decrease in net value was primarily due to the drop of sales volume of Apollo V series. We recorded a gross loss of RMB 5.8 million, US dollar 0.9 million for the first half of 2026 compared to RMB 10.7 million in the same period after 2025. Cost of revenue for the first half of fiscal year 2026 is RMB 8.6 million, USD 1.3 million compared to RMB 19 million in the same period of 2025. The decline was mainly due to the decrease in sales volume.

In the same period of time, 2,129,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000

Total operating expenses for the first half of fiscal year 2026 were RMB 285.8 million, USD 42 million, compared to the total operating income of RMB 21.3 million for the same period of 2025. Selling and marketing expenses increased by 17% to RMB 3.1 million, USD 0.4 million, for RMB 2.6 million for the same period of 2025. This increase was mainly due to the increase in sales marketing expansion.

In the first half of the year of 2026, RMB 2,154,000 was increased by RMB 2,950,000, General and administrative expenses increased by 29.5% to RMB 27.9 million, US dollar 4.1 million for the first half of 2026.

for RMB 21.5 million for the same period of 2025. The increase in general and administrative expenses was primarily due to the increase in professional fees and real estate-related taxes.

研发费用较2025年上百财年的人民币316万元增长了39.8% 自2026年同期的人民币412万元或65万美元 Research and development expenses increased by 39.8% to RMB 4.4 million, U.S. dollar 0.6 million for the first half of 2026, from RMB 3.2 million from the same period of 2025.

The increase in research and development expenses was primarily due to the increase in service fees of system development.

In the last 100 years of the year of 2026, the loss of RMB 2.5 billion, or $36.7 billion, due to the change in the value of encrypted currency supply, Change in fair value of cryptocurrencies was a loss of RMB 250.5 million, US dollar 36.8 million for the first half of 2026.

compared to a gain of RMB 48.6 million for the same period of 2025. The increase in loss from change in fair value of cryptocurrencies was primarily due to the decreased BNB price during the first half of 2026.

In the first half of 2026, the operating loss was RMB 2.9 billion or $4,283 billion. In the same period of time in 2025, the operating profit was RMB1058 million. In the same period of time in 2026, the operating profit was RMB1831 million or RMB269 million. In the same period of time in 2025, the operating profit was RMB1058 million. 6.5 million U.S. dollars. In the same period in 2025, the net profit was 1,178 million U.S. dollars. In the first half of 2020, the net profit was 13.65 U.S. dollars or 2 U.S. dollars. In the same period in 2025, the net profit was 0.43 U.S. dollars. As of June 30, Loss from operations was RMB 291.7 million, US dollar 42.8 million for the first half of 2026.

compared to a profit of RMB 10.6 million in the same period of 2025. Other expenses was RMB 18.3 million, US dollar 2.7 million for the first half of 2026 compared to nil for the same period of 2025. The change was mainly due to the loss from change in fair value of shorter investments during the first half of 2026. Net loss was RMB 316.7 million, US dollar 46.5 million for the first half of 2026, compared to RMB 11.8 million in the same period of 2025. Basic and diluted loss per share was RMB 13.65, US dollar 2 for the first half of 2026, We believe that

We remain confident in our business strategy and ability to execute

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 Marina Rubano. Please go ahead.

Hi, good morning. Thank you for taking my question. So my question is, why has the company chosen to focus on AI-related business this year? 第一个问题是问孔总的,请问公司为什么选择在今年重点布局AI相关的业务?

The company's AI business is based on the trend of industry development and long-term strategic development of enterprises. The company has been in the blockchain field for many years and has mature hardware development, infrastructure construction, and product operation capabilities. In the first half of 2026, the industry has entered the new development cycle of AI and Web3 technology integration. Therefore, the company decided to focus on AI-related business this year. Currently, it has landed on the Apollo Cloud PC AI Mini, which not only supports the Open Cloud AI Agenda system, Our expansion into AI is the result of a long-term strategic evaluation rather than a short-term market trend. Over the years, we have built solid capabilities in blockchain infrastructure

hardware development, ecosystem construction, and product operations. As AI and Web3 increasingly converge, we see significant opportunities to leverage this strength to develop next-generation intelligent products. The launch of the Apollo Cloud PCA1 Mini represents the first step in this strategy. Beyond supporting the Open Cloud AI agent system, The project is designed for practical applications across entertainment, content creation, and office productivity. Going forward, we will continue expanding both the hardware and software components of the open cloud ecosystem to support border AI adoption. Great, great. Thank you.

Your next question comes from Alfred Wu.

Hello, my question is, what are the complex future plans for digital assets reserves? Thank you.

Okay, thank you. 第二个问题问孔总,公司未来的数字货币储备计划是什么? 数字货币储备一直是公司既定的长期战略布局。

At present, the company will use BNV as the core digital asset strategy reserve. In the future, the company will, according to market changes and market development, stabilize the real BNV at the right time, and further expand the reserve advantage of core strategic assets. At the same time, the company will continue to pay attention to the global digital asset development situation, moderately optimize asset combination, and enhance the stability and risk-resistant ability of the overall asset configuration.

Digital assets have become an integral part of our long-term corporate strategy. We have designated BNB as our core strategic reserve asset based on our assessment of its ecosystem potential and long-term value. We intend to manage our reserve portfolio prudently by evaluating market conditions, liquidity needs, and strategic priorities before making any additional investment. At the same time, We will continue optimizing our overall digital asset allocation to enhance portfolio resilience while supporting future business development and ecosystem expansion. Okay, thank you.

Your next question comes from Olivia Bennett. Hi, how are you?

And my question is, what is the company long-term business development strategy? Thank you.

第三个问题问孔总,请问公司长远的业务发展规划。 公司整体中长期的战略规划还是比较清晰的,以数字资产储备为基石, 以AI加Web3技术融合为核心增长点,一方面,

Our long-term strategy is built on two complementary pillars.

The first is maintaining a distinct line digital asset reserve strategy with BNB serving as a core strategic asset to support financial stability and long-term ecosystem development. The second is driving sustainable business growth through the integration of AI and Web3 technologies. Leveraging the already deployed Apollo Cloud PCA1 Mini as a starting point, we plan to continue expanding the open cloud ecosystem by introducing additional projects, strengthening our software platform, and exploring new commercial applications and business models. Together, these initiatives are intended to create a differentiated technology platform capable of supporting our future growth.

That's our next question.

Thank you. It comes from Hannah Winslow. Okay. Good morning.

Thank you so much for the presentation. And my question is, what are the company's expectations for its operating performance in the second half of 2026? This is Ms. Chen. What are the company's expectations for the company's performance in the second half of 2026?

In the second half of the year, the overall business will include digital assets and new products. The planning of these two aspects has been answered by the public. I will not go into detail. In addition to this, I will inform you of the current recovery progress of the company. The company's recovery plan for stocks started in December 2025. As of June 30, 2026, the company has made a total recovery of 111,7401 shares. The recovery plan will continue in the future. The management team will maintain a positive attitude for the long-term development of the company in the future. The company will also continue to firmly promote the landing of various main business operations, and ensure the long-term core rights of shareholders.

In the second half of 2026, we will remain focused on executing our strategy of prioritize, including advancing our digital asset initiatives and expanding our next generation AI product ecosystem. As Mr. Kong has already discussed this initiative in detail, I will instead provide an update on our capital management efforts. The company launched its share repurchase program in December 2025. As of June 30, 2026, we had repurchased an aggregate of 1,117,401 shares, and we intend to continue executing the program in accordance with its terms and prevailing market conditions. We believe the repurchase program reflects management Confidence in the company's long-term prospect. Going forward, we will continue strengthening our operating foundation, executing our strategy initiative with this supply and creating sustainable value for our shareholders.

Thank you. That does conclude our question and answer session. I'll now hand back for closing remarks.

Thank you very much for participating in this conference. If you have any questions, please contact us via e-mail or contact our consultant, AI, via e-mail at investatassist.com. Thank you very much for joining the conference call. If you have any questions, please contact us through email at

or research our IR Council's Ascent Investor Relations at tina.xaccent.com. Management will respond to your question as soon as possible. We appreciate your interest and support in Nano Labs and look forward to speaking with you again next time.

Thank you for attending Nanolab's first half of 2026 earnings conference call. This concludes our call today and we thank you all for listening. Goodbye.

Goodbye.