NaaS Technology, Inc. Q2 FY2023 earnings call

• Network expansion: Total charging volume surged 112% y-o-y to 1,228 GWh, making up 21.7% of China's public charger volume. Gross transaction value through the network rose 109% y-o-y to RMB1.2 billion. - Strategic partnerships: Deepened with Hyundai, PICC Real Estate Investment, and CR Capital MGMT. Signed a RMB204 million energy storage order. - Global expansion: Acquired 89.99% stake in Sinopower in Hong Kong and entered into an agreement to acquire Charge Amps in Europe. Sinopower has made progress in PV and EV projects, while Charge Amps brings European market presence. - Energy storage growth: New energy storage facilities saw exponential growth; the signed order involves outfitting 380 charging stations with 580 integrated cabinets and energy storage management systems with over 130-megawatt hours of energy storage capacity.

In the second quarter of 2023, NaaS' revenues grew 121% year-over-year to reach RMB48.6 million. Revenues from off-line EV charging solutions increased by 153% year-over-year, accounting for a higher share of total revenues compared with the first quarter. The total charging volume increased by 112% year-over-year reaching 1,228 gigawatt hours, which accounted for 21.7% of all charging volume completed through public chargers in China in the same period. Additionally, a RMB204 million energy storage order was signed, with over 380 charging stations to be outfitted with energy storage equipment and comprehensive solutions.

• Reaffirmed full-year revenue guidance of RMB500 million to RMB600 million, boosted by the RMB204 million energy storage order and strategic acquisitions. - Confidence in achieving the full-year target strengthened by ongoing network expansion and growing client base.

Q: Can you discuss the progress of the Sinopower acquisition and strategic partnerships?

A: Sinopower has made progress in PV (completed a 2.6 milliwatts rooftop solar project in HK generating 31 million kWh annually) and EV (qualified for Hong Kong government's EV charging at home subsidy scheme and advancing over 40 projects). Partnerships with Hyundai aim to enhance charging infrastructure for their EV models; with PICC to build a top-notch new energy charging service system; with CR Capital MGMT to work on integrated energy port construction and new energy asset securitization.

Q: Can you discuss more details on the acquisition of Charge Amps and energy storage in charging stations?

A: Acquisition of Charge Amps is a strategic step for Europe market entry; Charge Amps has a strong presence in Europe with 22% local market share. For energy storage in charging stations, over 13,000 stations in China's cities have potential for energy storage, and a RMB200 million to RMB300 million CapEx opportunity is seen by 2024 with 5,000 suitable stations.