Nano Labs Announces Second Half of 2024 Financial Results

Rhea-AI Summary

Nano Labs (Nasdaq: NA) reported its H2 2024 financial results, showing mixed performance. Net revenue decreased to RMB15.9 million (US$2.2 million) from RMB26.1 million in H2 2023, primarily due to lower iPollo V Series sales. The company improved its gross profit to RMB11.6 million (US$1.6 million) compared to a loss of RMB40.6 million in H2 2023.

Operating loss narrowed to RMB39.8 million (US$5.5 million), while net loss improved to RMB60.4 million (US$8.4 million). The company has established Bitcoin value investment as a new business sector, holding approximately 400 BTC purchased for around $40 million. Additionally, Nano Labs released an upgraded Cuckoo 3.0 iteration chip in December 2024.

Cash and cash equivalents stood at RMB32.4 million (US$4.5 million) as of December 31, 2024, down from RMB48.2 million year-over-year.

Positive

• Net loss improved by 50% to RMB60.4M from RMB120.0M YoY
• Turned gross loss of RMB40.6M into gross profit of RMB11.6M
• Operating expenses decreased by 38.7% to RMB51.4M
• Established new Bitcoin investment division with 400 BTC holdings
• Released upgraded Cuckoo 3.0 iteration chip with enhanced performance

Negative

• Revenue declined 39% YoY to RMB15.9M
• Cash and cash equivalents decreased 32.8% to RMB32.4M
• Recorded RMB15.7M loss from fair value change in cryptocurrencies
• New interest expenses of RMB4.9M due to construction completion

Insights

Financial Analyst

Nano Labs' H2 2024 results reveal a declining revenue trend alongside narrowing losses, highlighting a company in strategic transition. Revenue fell to RMB15.9 million ($2.2 million), down from RMB26.1 million in H2 2023, while net losses improved to RMB60.4 million from RMB120.0 million year-over-year.

The company's dramatic 61.9% reduction in R&D expenses raises significant concerns about future product competitiveness despite the recent Cuckoo 3.0 chip launch. This cost-cutting appears to be the primary driver of reduced losses rather than business growth.

Most notably, Nano Labs has made a high-risk strategic pivot to cryptocurrency, holding approximately 400 BTC purchased for $40 million as a "primary reserve asset." This Bitcoin position dwarfs their cash reserves of just RMB32.4 million ($4.5 million), creating extreme balance sheet concentration in a volatile asset class. The company has already recorded RMB15.7 million in cryptocurrency fair value losses.

While management speaks optimistically about Web3.0 and AI integration, the fundamental metrics show a company with declining core business and cash position, making an extraordinarily speculative bet on cryptocurrency while continuing to post significant operational losses. This Bitcoin reserve strategy represents one of the most aggressive corporate treasury positions relative to company size among public firms.

HONG KONG, March 25, 2025 /PRNewswire/ -- Nano Labs Ltd (Nasdaq: NA) ("we," the "Company" or "Nano Labs"), a leading fabless integrated circuit design company and product solution provider in China, today announced its unaudited financial results as of December 31, 2024 and for the six months ended December 31, 2024.

Second Half of 2024 Financial Highlights

• Net revenue was RMB15.9 million (US$2.2 million) for the second half of 2024, compared to RMB26.1 million in the same period of 2023.
• Gross profit was RMB11.6 million (US$1.6 million) for the second half of 2024, compared to a gross loss of RMB40.6 million in the same period of 2023.
• Loss from operations was RMB39.8 million (US$5.5 million) for the second half of 2024, compared to a loss from operations of RMB124.4 million in the same period of 2023.
• Net loss was RMB60.4 million (US$8.4 million) for the second half of 2024, compared to a net loss of RMB120.0 million in the same period of 2023.
• Net loss per share (both basic and diluted) was RMB6.01 (US$0.84) for the second half of 2024, compared to a net loss per share (both basic and diluted) of RMB19.12 in the same period of 2023.

Mr. Jianping Kong, Chairman and Chief Executive Officer of the Company, commented, "The year 2024 brings many opportunities as the Company expanded its business. We have formally established Bitcoin value investment as a new business sector and adopting Bitcoin as our primary reserve asset. As of the date of this press release, the Company holds about 400 BTC with a total purchase price of around $40 million.

Furthermore, in December 2024, we released upgraded complete machine equipped with the Cuckoo 3.0 iteration chip, which shows enhanced performance that achieves world-leading standard. This important improvement provides us with a key advantage to grow our market share. With the accelerated evolution of AI, we plan to create AI applications within the Web3.0 ecosystem and focus on integrating AI with Web3.0 technologies.

Through our visionary strategic planning and persistent execution, we remain committed to deepening our expertise in the Web3.0 domain. We believe we are able to create great value and deliver strong results for our supporters."

Mr. Bing Chen, Chief Financial Officer of the Company, commented, "for the second half of 2024, our net revenue was RMB15.9 million (US$2.2 million). In addition, the net loss was RMB60.4 million (US$8.4 million) for the six months ended December 31, 2024, compared to a net loss of RMB120.0 million in the same period of 2023. We are confident that we are able to to deliver exceptional value creation and present a satisfactory performance report to our stakeholders."

Second Half of 2024 Financial Results

Net Revenues

Net revenue was RMB15.9 million (US$2.2 million) for the second half of 2024, compared to RMB26.1 million for the same period of 2023. The decrease in net revenues was primarily due to the decrease in sales volume of iPollo V Series.

Cost of Revenues

Cost of revenues was RMB4.3 million (US$0.6 million) for the second half of 2024, compared to RMB66.6 million for the same period of 2023. The change was mainly due to the decrease in sales volume and less inventory write-down recorded.

Operating Expenses

Total operating expenses decreased by 38.7% to RMB51.4 million (US$7.1 million) for the second half of 2024 from RMB83.8 million for the same period of 2023.

• Selling and marketing expenses decreased by 17.7% to RMB4.8 million (US$0.7 million) for the second half of 2024, from RMB5.8 million for the same period of 2023. The decrease in selling and marketing expenses was primarily due to the decrease in employee salary expenses.
• General and administrative expenses increased by 13.5% to RMB25.4 million (US$3.5 million) for the second half of 2024, from RMB22.4 million for the same period of 2023. The increase in general and administrative expenses was primarily due to the increase in depreciation expenses.
• Research and development expenses decreased by 61.9% to RMB21.2 million (US$3.0 million) for the second half of 2024, from RMB55.6 million for the same period of 2023. The decrease in research and development expenses was primarily due to the decrease in salary expenses, material fees, and equipment fees.

Loss from Operations

Loss from operations was RMB39.8 million (US$5.5 million) for the second half of 2024, compared with loss from operations of RMB124.4 million for the same period of 2023.

Finance Expenses

Finance expenses was RMB2.0 million (US$0.3 million) for the second half of 2024, compared with finance income of RMB0.7 million for the same period of 2023.

Interest Expenses

Interest expenses was RMB4.9 million (US$0.7 million) for the second half of 2024, compared with nil for the same period of 2023. The change was due to the completion of construction in progress and cease of interest capitalization during the first half of 2024.

Change in fair value of cryptocurrencies

Change in fair value of cryptocurrencies was RMB 15.7 million (US$2.2 million) loss for the second half of 2024, compared with nil for the same period of 2023.

Net Loss

Net loss was RMB60.4 million (US$8.4 million) for the second half of 2024, compared with RMB120.0 million in the same period of 2023.

Basic and Diluted Loss Per Ordinary Share attributable to Nano Labs Ltd

Basic and diluted loss per share was RMB6.01 (US$0.84) for the second half of 2024, compared with basic and diluted loss per share of RMB19.12 for the same period of 2023.

Cash and Cash Equivalents

As of December 31, 2024, the Company had cash and cash equivalents of RMB32.4 million (US$4.5 million), compared with RMB48.2 million as of December 31, 2023.

Exchange Rate

This press release contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) solely for the convenience of the reader. Unless otherwise specified, all translations of Renminbi amounts into U.S. dollar amounts in this press release are made at RMB7.1884 to US$1.00, the central parity rate on December 31, 2024 published by the People's Bank of China.

Non-GAAP Financial Measures

In evaluating our business, we consider and use adjusted net income/(loss) as an additional non-GAAP measure to review and assess our operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define adjusted net income/(loss) as net income/(loss) excluding share-based compensation expense.

We present the non-GAAP financial measure because they are used by our management to evaluate our operating performance and formulate business plans. Non-GAAP financial measures enable our management to assess our operating results without considering the impact of non-cash charges and non-operating items. We also believe that the use of the non-GAAP measure facilitates investors' assessment of our operating performance.

The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measure is that they do not reflect all items of income and expense that affect our operations. Share-based compensation expenses have been and may continue to be incurred in our business and are not reflected in the presentation of adjusted net income/(loss). Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

Conference Call

The Company will host an earnings conference call to discuss its financial results at 8:30 am U.S. Eastern Time (8:30 pm Beijing Time) on March 25, 2025.

For participants who wish to join the call, please access the link provided below to complete the online registration process.

Registration Link: https://s1.c-conf.com/diamondpass/10046219-hj76t5.html

Upon registration, participants will receive the dial-in number and unique PIN, which can be used to join the conference call. If participants register and forget their PIN or lose their registration confirmation email, they may simply re-register and receive a new PIN. All participants are encouraged to dial in 15 minutes prior to the start time.

A live and archived webcast of the conference call will be accessible on the Company's investor relations website at: https://ir.nano.cn/.

A telephone replay of the call will be available until 1 April 2025 via the following dial-in details:

Dial-in Numbers:

US/Canada:	1855 883 1031
Hong Kong:	800 930 639
China:	400 1209 216
Replay PIN:	10046219

About Nano Labs Ltd

Nano Labs Ltd is a leading fabless integrated circuit ("IC") design company and product solution provider in China. Nano Labs is committed to the development of high throughput computing ("HTC") chips, high performance computing ("HPC") chips, distributed computing and storage solutions, smart network interface cards ("NICs") vision computing chips and distributed rendering. Nano Labs has built a comprehensive flow processing unit ("FPU") architecture which offers solution that integrates the features of both HTC and HPC. Nano Lab's Cuckoo series are one of the first near-memory HTC chips available in the market*. For more information, please visit the Company's website at: ir.nano.cn.

*According to an industry report prepared by Frost & Sullivan.

Forward-Looking Statements

This report contains 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. These forward-looking statements include, without limitation, the Company's plan to appeal the Staff's determination, which can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. 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. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

For investor and media inquiries, please contact:

Nano Labs Ltd
Email: ir@nano.cn

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

 

 

 

Consolidated Balance Sheets
(Unaudited)
	As of December 31,		As of December 31,
	2023		2024
	RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents	48,164,664		32,431,081		4,511,585
Restricted cash	417,990		418,722		58,250
Accounts receivable, net	1,739,065		572,803		79,683
Inventories, net	12,874,986		29,866,418		4,154,807
Prepayments	24,386,010		4,606,066		640,764
Other current assets	37,908,092		55,858,433		7,770,635
Cryptocurrencies	-		242,889,085		33,789,033
Total current assets	125,490,807		366,642,608		51,004,757
Non-current assets:
Property, plant and equipment, net	169,653,582		197,341,915		27,452,829
Intangible asset, net	47,731,288		46,745,444		6,502,900
Operating lease right-of-use assets	7,424,554		5,203,525		723,878
Total non-current assets	224,809,424		249,290,884		34,679,607
TOTAL ASSETS	350,300,231		615,933,492		85,684,364
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Short-term debts	20,000,000		18,000,000		2,504,034
Current portion of long-term debts	3,410,000		5,350,000		744,255
Accounts payable	16,875,586		18,101,451		2,518,147
Advance from customers	107,826,617		98,895,905		13,757,708
Operating lease liabilities, current	3,479,752		1,914,109		266,277
Other current liabilities	90,978,171		67,163,217		9,343,278
Total current liabilities	242,570,126		209,424,682		29,133,699
Non-current liabilities:
Long-term debts	120,260,783		170,683,636		23,744,315
Operating lease liabilities, non-current	3,730,672		2,917,350		405,841
Total non-current liabilities	123,991,455		173,600,986		24,150,156
Total liabilities	366,561,581		383,025,668		53,283,855
Shareholders' equity (deficit):
Class A ordinary shares ($0.002 par value; 12,141,093 and 14,141,093 shares authorized as of December 31, 2023 and 2024, respectively; 4,192,730 and 13,273,596 shares issued as of December 31, 2023 and 2024, respectively; 3,724,236 and 12,815,143 shares outstanding as of December 31, 2023 and 2024, respectively)*	50,106		176,842		24,601
Class B ordinary shares ($0.002 par value; 2,858,909 shares authorized; 2,858,909 shares issued and outstanding as of December 31, 2023 and 2024)*	36,894		36,894		5,132
Additional paid-in capital	428,310,028		780,499,664		108,577,662
Accumulated deficit	(452,031,693)		(565,218,741)		(78,629,283)
Statutory reserves	6,647,109		6,647,109		924,699
Accumulated other comprehensive income	2,254,558		8,647,353		1,202,959
Total Nano Labs Ltd shareholders' equity (deficit)	(14,732,998)		230,789,121		32,105,770
Noncontrolling interests	(1,528,352)		2,118,703		294,739
Total shareholders' equity (deficit)	(16,261,350)		232,907,824		32,400,509
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)	350,300,231		615,933,492		85,684,364
*After giving effect of the 2-for-1 and 10-for-1 reverse stock split effective on January 31, 2024 and November 3, 2024, respectively

 

 

 

	Consolidated Statements of Operations and Comprehensive Income (Loss)
	(Unaudited)
		For the six months ended December 31,
		2023		2024
		RMB		RMB		US$
	Net revenues	26,066,660		15,856,436		2,205,837
	Cost of revenues	66,617,485		4,284,184		595,986
	Gross profit (loss)	(40,550,825)		11,572,252		1,609,851
	Operating expenses:
	Selling and marketing expenses	5,830,986		4,801,639		667,970
	General and administrative expenses	22,360,766		25,379,491		3,530,618
	Research and development expenses	55,648,133		21,210,897		2,950,712
	Total operating expenses	83,839,885		51,392,027		7,149,300
	Loss from operations	(124,390,710)		(39,819,775)		(5,539,449)
	Other expenses (income):
	Finance  expenses (income)	(680,536)		1,994,310		277,434
	Interest expenses	-		4,903,728		682,172
	Interest income	(153,112)		(407,669)		(56,712)
	Change in fair value of cryptocurrencies	-		15,744,170		2,190,219
Other income		(3,507,095)		(1,660,935)		(231,058)
	Total other expenses (income)	(4,340,743)		20,573,604		2,862,055
	Loss before income tax provision	(120,049,967)		(60,393,379)		(8,401,504)
	Income tax provision	(17,394)		-		-
	Net loss	(120,032,573)		(60,393,379)		(8,401,504)
	Less: net loss attributable to noncontrolling interests	(1,528,282)		(4,440,071)		(617,672)
	Net loss attributable to Nano Labs Ltd	(118,504,291)		(55,953,308)		(7,783,832)
	Comprehensive income (loss):
	Net loss	(120,032,573)		(60,393,379)		(8,401,504)
	Other comprehensive income (loss):
	Foreign currency translation adjustment	(1,616,096)		1,591,571		221,408
	Comprehensive Loss	(121,648,669)		(58,801,808)		(8,180,096)
	Comprehensive loss attributable to noncontrolling interests	(1,528,352)		(4,440,489)		(617,730)
	Comprehensive loss attributable to Nano Labs Ltd	(120,120,317)		(54,361,319)		(7,562,366)
	Net loss per ordinary share attributable to Nano Labs Ltd
	Basic*	(19.12)		(6.01)		(0.84)
	Diluted*	(19.12)		(6.01)		(0.84)
	Weighted average number of shares used in per share calculation:
	Basic*	6,197,066		9,316,203		9,316,203
	Diluted*	6,197,066		9,316,203		9,316,203
	*After giving effect of the 2-for-1 and 10-for-1 reverse stock split effective on January 31, 2024 and November 3, 2024, respectively

 

 

 

Non-GAAP Reconciliation
(Unaudited)
	For the Six Months Ended December 31,
	2023		2024
	RMB		RMB	US$
Net loss	(120,032,573)		(60,393,379)	(8,401,504)
Add:
Share-based compensation expenses	580,813		116,013	16,139
Non-GAAP adjusted net loss	(119,451,760)		(60,277,366)	(8,385,365)

 

 

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SOURCE Nano Labs Ltd

FAQ

What caused Nano Labs (NA) revenue decline in H2 2024?

Revenue declined to RMB15.9M due to decreased sales volume of iPollo V Series products.

How many Bitcoin does Nano Labs (NA) hold as of March 2025?

Nano Labs holds approximately 400 BTC, purchased for around $40 million.

What was Nano Labs (NA) net loss in H2 2024?

Net loss was RMB60.4 million (US$8.4 million), improved from RMB120.0 million in H2 2023.

What major product did Nano Labs (NA) release in December 2024?

Released upgraded complete machine with Cuckoo 3.0 iteration chip, achieving world-leading performance standards.