NaaS Q3 Revenue Surges 536% YoY to USD 23.4 Mn, with FY24 Projections at USD 411 Mn

Technology Author: Yiru Qian Oct 26, 2023 09:23 PM (GMT+8)

NaaS has made significant strides to the global energy market, aiming to become a leading player in the global new energy asset operation and management services market in the long term, serving about 20% of the global new energy assets.


NaaS, the first US-listed EV charging service company in China, announced its unaudited financial results for the third quarter of 2023 on October 26, 2023.

The company's single-quarter revenue reached a record high of CNY 170.9 million (USD 23.4 million), marking an impressive increase of 536% year over year. Additionally, revenue in September surpassed CNY 100 million, exceeding the entire revenue of 2022. 

“Our exceptional third quarter operating and financial results reflect the significant expansion of our business. Led by our increasing capabilities in energy management and storage solutions, our total revenues increased six-fold year-over-year and tripled quarter-over-quarter,” said Ms. Yang Wang, founder and CEO of NaaS. 

 According to the earnings report, NaaS' gross profit grew 28 times year over year to CNY 46.8 million (USD 6.4 million) in the third quarter of 2023. “With our expansion and high-growth profile, our profitability trajectory has become much more visible, as evidenced by the significant jump in our third-quarter gross margin to 27.4% from 6.1% in the same period last year," added Mr. Alex Wu, NaaS' Co-founder, President and CFO. 

During the third quarter of 2023, the number of orders transacted through NaaS' network climbed to 59.2 million, a 58% increase year over year. Furthermore, the charging volume processed through NaaS’ network reached 1,383 GWh, growing by 66% from the previous year and accounting for 21.8% of the nation's total public charging volume. 

As of September 30, 2023, NaaS' network had connected 767,611 EV chargers covering 73,710 charging stations, up by 76% from 436,296 and 65% from 44,767 as of September 30, 2022, respectively. 

NaaS' focus on achieving economies of scale affords it increased operating leverage and sustainable growth. Looking ahead, the Company maintains its previous guidance, anticipating full-year 2023 revenues between CNY 500 million (USD 69 million) and CNY 600 million (USD 82 million), which marks a notable year over year increase of five to six fold. NaaS also expects its full-year 2024 revenues to be between CNY 2 billion (USD 274 million) and CNY 3 billion (USD 411 million). 

The other side contributing to the satisfying quarterly transcript is the narrowed net loss. According to the report, non-IFRS net loss attributable to ordinary shareholders was CNY 175.7 million (USD 24.1 million) in the third quarter of 2023 and non-IFRS net margin attributable to ordinary shareholders improved from negative 359% to negative 103%. 

"We're pleased with our stellar third-quarter performance fueled by the significant growth in our energy solutions business, which contributed 81% of our revenues in the quarter," said Wu. 

The Company fortified its local footprint by extending partnership networks and winning new, important contracts in energy storage, including securing the leading integrated ‘PV-storage-charging-swapping’ project in Anji, where it will offer holistic energy solutions.  

In September, the Company also secured a pivotal CNY 204 million energy storage order, positioning itself to vie for global leadership in integrated charging and storage solutions. Under these agreements, NaaS will equip over 380 charging stations with energy storage equipment and provide comprehensive solutions, boasting an energy storage capacity of 130.088MWh.

Other notible partnerships contain collaborations established with China Construction Bank, ZSY and other entities, where partnerships will encompass various financial areas, including global new energy asset investment and construction finance, supply chain finance, energy scenario payment and settlement, energy digital accounts, industrial M&A financial support and more. 

Meanwhile, NaaS' expansion beyond mainland China has already yielded fruitful result and contributed 32.7% of total revenues this quarter. As growing its business in international markets, NaaS remains dedicated to providing sustainable new energy solutions while exploring diverse opportunities that drive the industry forward.

 This June, the Company disclosed a definitive agreement to purchase 89.99% of Sinopower HK's shares. Subsequently, Sinopower HK was appointed as an EV-charging contractor under the EHSS, a HKD 3.5 billion scheme initiated by the HK Government in 2020. In September, NaaS HK, a NaaS affiliate, introduced a "one-click charging" service for EV users in Hong Kong. Additionally, NaaS joined the inaugural cohort of the Office for Attracting Strategic Enterprises (OASES) of Hong Kong Special Administrative Region (HKSAR). Internationally, NaaS has made substantial strides, venturing into regions like Europe, Southeast Asia and the Middle East.

Having been listed on NASDAQ since June 2022, NaaS has successfully secured multiple financing rounds this year, amassing a total of USD 91 million with notable investors like Dr. Adrian Cheng. NaaS was also included in the NASDAQ Golden Dragon China Index this September.

"The consistent recognition we've received for our integrated energy infrastructure solutions, both domestically and internationally, underscores our commitment to the global energy transition across the key drivers of renewables, electrification, and energy storage improvements. As we further advance, sustainable, clean energy solutions on a global scale, we endeavor to become a leading integrated new energy asset management and services provider," said Wang.