Naas Technology Inc. Charging Network Accomplishes 50% City Coverage in China

Rhea-AI Summary

NaaS Technology Inc. (NAAS) has expanded its charging network to cover 360 cities in China by the end of 2024, representing over 50% of China's total 694 cities. Approximately 170 of these cities saw charging volume increase by more than 50% in 2024 compared to 2023.

On the supply side, NaaS connected nearly 1.15 million chargers as of September 30, 2024, representing about 35% of China's total public charging infrastructure. The company has strengthened its demand-side operations through partnerships with major automotive brands including BYD's sub-brands, NETA, IM Motors, Hongqi, and FAW-Volkswagen.

The company reported a record high gross margin of 57% for Q3 2024, reflecting successful implementation of its core charging services strategy and technological advancements.

Positive

• Network expansion to 360 cities, covering 50% of China's cities
• 170 cities showed >50% charging volume growth YoY
• Connected 1.15M chargers, representing 35% of China's public charging infrastructure
• Record high gross margin of 57% in Q3 2024
• Strategic partnerships with major automotive brands

Negative

• None.

Insights

Market Research Analyst

The expansion of NaaS' charging network to 360 cities, representing over 50% of China's total cities, coupled with a 35% market share of public charging infrastructure, demonstrates remarkable market penetration. The 57% gross margin achievement in Q3 2024 signals strong operational efficiency and pricing power.

Strategic partnerships with major EV manufacturers like BYD, NETA and FAW-Volkswagen create a powerful network effect, establishing NaaS as a critical infrastructure player in China's EV ecosystem. The 170 cities showing over 50% charging volume growth indicate robust demand and user adoption.

The connection of 1.15 million chargers positions NaaS favorably in China's rapidly growing EV market, where public charging infrastructure expanded by 600,000 units in just 9 months of 2024. This accelerated infrastructure deployment aligns with China's aggressive EV adoption targets and suggests sustained growth potential.

Financial Analyst

The record 57% gross margin in Q3 2024 is particularly impressive for an infrastructure-heavy business model, suggesting effective cost management and strong pricing power. The company's strategic focus on core charging services appears to be yielding positive financial results.

The expansion metrics are compelling from a revenue growth perspective: 50%+ charging volume growth in 170 cities indicates strong unit economics and network effects taking hold. The 35% market share of public charging infrastructure provides significant competitive advantages and barriers to entry.

For a company with a market cap of just $22.2 million, the scale of operations and market position appears significantly undervalued compared to its infrastructure footprint and strategic positioning in China's EV ecosystem. The partnership strategy with major OEMs creates multiple revenue streams and reduces customer acquisition costs.

BEIJING, Jan. 16, 2025 /PRNewswire/ -- NaaS Technology Inc. (Nasdaq: NAAS) ("NaaS" or the "Company"), the first U.S.-listed EV charging service company in China, today announced its charging network has successfully expanded to 360 cities in China as of year-end 2024. This represents over 50% city coverage compared to a total city count of 694 in accordance with National Bureau of Statistics of China (NBS) for year 2023. Among 360 cities NAAS covered, approximately 170 of them increased charging volume through NaaS platform by more than 50% in 2024 compared to 2023. NAAS achieved this new benchmark through robust growth in both supply-side infrastructure and demand-side partnerships:

• On the supply side, as of September 30, 2024, NaaS had connected nearly 1.15 million chargers to its charging network, accounting for approximately 35%^[1] of China's total public charging infrastructure. This critical momentum is a result of NaaS' business strategy focus on core charging services as announced last year and its long-term mission in advancing the sustainable energy transition.
• On the demand side, NaaS has expanded its user base through strategic collaborations with major automotive OEM brands. Partnerships with BYD's sub-brands (Dynasty, Ocean, and Fang Cheng Bao), as well as leading players such as NETA, IM Motors, Hongqi, and FAW-Volkswagen, have ensured that electric vehicle (EV) drivers can easily, quickly and reliably access chargers anywhere and at any time.

Ms. Yang Wang, Chief Executive Officer of NaaS, commented, "We are proud of our dedicated pursuit of the strategic initiatives in advancing the EV charging ecosystem. Our supply-side infrastructure connection powered by AI technologies and NaaS Energy Fintech system is ready to deliver top-tier EV charging solutions for our users. Looking ahead, NaaS remains committed to advancing interconnectivity for vehicles of all types and sizes, as well as spearheading innovation in China's rapidly growing EV charging market. By bridging the gap between supply and demand, NaaS is setting new standards for operational excellence, leading partnership win-wins, and empowering EV users to embrace a sustainable future."

Mr. Steven Sim, Chief Financial Officer of NaaS, added, "Our strategic investment in the supply-side capabilities and technological advancements for our core charging services have consistently enhanced our financial performance, culminating in a record high gross margin of 57% for the most recent quarter ended September 30, 2024. As we continue to optimize, adapt and scale our charging business to fulfill the demand of the ever-expanding EV drivers, we are confident in further delivering the required energy performance to the EV charging community."

[1] According to data from the China Electric Vehicle Charging Infrastructure Promotion Alliance, China had 3.33 million public chargers as of September 30, 2024, up from 2.73 million at the end of 2023.

About NaaS Technology Inc.

NaaS Technology Inc. is the first U.S. listed EV charging service company in China. The Company is a subsidiary of Newlinks Technology Limited, a leading energy digitalization group in China. The Company provides one-stop solutions to energy asset owners comprising charging services, energy solutions and new initiatives, supporting every stage of energy assets' lifecycle and facilitating energy transition.

Safe Harbor Statement

This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "believes," "anticipates," "intends," "estimates" and similar statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. All information provided in this press release is as of the date hereof, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: NaaS' goals and strategies; its future business development, financial conditions and results of operations; its ability to continuously develop new technology, services and products and keep up with changes in the industries in which it operates; growth of China's EV charging industry and EV charging service industry and NaaS' future business development; demand for and market acceptance of NaaS' products and services; NaaS' ability to protect and enforce its intellectual property rights; NaaS' ability to attract and retain qualified executives and personnel; the COVID-19 pandemic and the effects of government and other measures that have been or will be taken in connection therewith; U.S.-China trade war and its effect on NaaS' operation, fluctuations of the RMB exchange rate, and NaaS' ability to obtain adequate financing for its planned capital expenditure requirements; NaaS' relationships with end-users, customers, suppliers and other business partners; competition in the industry; relevant government policies and regulations related to the industry; and fluctuations in general economic and business conditions in China and globally. Further information regarding these and other risks is included in NaaS' filings with the SEC.

For investor and media inquiries, please contact:

Investor Relations
NaaS Technology Inc.
E-mail: ir@enaas.com
Media inquiries:
E-mail: pr@enaas.com 

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SOURCE NaaS Technology Inc.

FAQ

How many cities does NaaS Technology (NAAS) cover in China as of 2024?

NaaS Technology covers 360 cities in China as of year-end 2024, representing over 50% of China's total 694 cities.

What is NaaS Technology's (NAAS) market share in China's public charging infrastructure?

As of September 30, 2024, NaaS Technology connected approximately 1.15 million chargers, representing about 35% of China's total public charging infrastructure.

What was NaaS Technology's (NAAS) gross margin in Q3 2024?

NaaS Technology achieved a record high gross margin of 57% for the quarter ended September 30, 2024.

Which major automotive brands have partnered with NaaS Technology (NAAS)?

NaaS has partnered with BYD's sub-brands (Dynasty, Ocean, and Fang Cheng Bao), NETA, IM Motors, Hongqi, and FAW-Volkswagen.

How many cities showed over 50% charging volume growth for NaaS (NAAS) in 2024?

Approximately 170 cities showed more than 50% increase in charging volume through the NaaS platform in 2024 compared to 2023.