NaaS Technology Inc. — FY2023 Form 20-F
Reporting period: Fiscal year ended December 31, 2023. This is an annual report, not a standalone Q4 report; quarterly results are not separately presented. Financial statements are prepared under IFRS and reported in RMB. U.S. dollar amounts are convenience translations.
Business context
NaaS provides EV charging services and energy solutions, including charging-station connectivity and operations, energy infrastructure and storage, and related services. Its 2023 expansion into energy solutions was driven in part by the Anji project and its June 2023 acquisition of 89.999% of rooftop-solar developer Sinopower. NaaS is a Cayman Islands holding company; operations are primarily conducted through PRC subsidiaries. It reports no VIE following its 2022 restructuring, but relies on a third-party operator for access to the Kuaidian platform and related services.
Key financial metrics
| Metric | FY2023 | FY2022 |
|---|---|---|
| Revenue | RMB320.1 million (US$45.1 million) | RMB92.8 million |
| Gross profit / gross margin | RMB88.8 million / 27.7% | RMB6.2 million / 6.6% |
| Operating loss | RMB1,066.4 million | RMB2,460.5 million |
| Net loss | RMB1,307.2 million (US$184.1 million) | RMB5,637.4 million |
| Net cash used in operating activities | RMB565.2 million | RMB580.7 million |
| Net cash used in investing activities | RMB339.6 million | RMB161.3 million |
| Net cash from financing activities | RMB827.7 million | RMB1,246.9 million |
| Cash and cash equivalents at year-end | RMB436.2 million (US$61.4 million) | RMB513.4 million |
Charging-services revenue rose to RMB129.1 million from RMB82.6 million; energy-solutions revenue increased to RMB187.3 million from RMB8.1 million; new-initiatives revenue was RMB3.7 million. Energy solutions represented 58.5% of revenue. The filing reports adjusted net loss of RMB703.8 million in 2023 versus RMB354.1 million in 2022, despite the lower IFRS net loss.
At year-end, total assets were RMB1,465.1 million and total liabilities RMB1,508.7 million, leaving negative equity of RMB43.6 million. Current assets were RMB1,144.0 million against current liabilities of RMB817.0 million. Bank borrowings totaled RMB754.8 million, including RMB73.0 million current; convertible bonds were RMB272.7 million at fair value, and lease liabilities were RMB14.1 million. The company reported RMB565.2 million of operating cash outflow and stated that existing cash was expected to cover general corporate needs for at least 12 months.
Material changes and unusual items
- Revenue grew approximately 245% year over year, led by energy solutions. Gross margin improved to 27.7% from 6.6%; energy-solutions costs were RMB146.4 million in 2023.
- Operating expenses fell to RMB1,179.6 million from RMB2,474.0 million, primarily because 2022 included RMB1,912.7 million of non-cash merger-related listing costs. 2023 expenses included RMB399.1 million of share-based payments.
- Fair-value losses were RMB204.0 million in 2023, versus RMB3,156.7 million in 2022; 2023 included a RMB116.5 million loss on convertible instruments. Finance costs increased to RMB33.0 million from RMB10.3 million, mainly due to higher borrowing and lease interest.
- Charging-service user incentives were material: RMB323.8 million of base incentives reduced revenue, while RMB224.5 million of excess incentives were recorded as selling and marketing expense.
- In late August 2023, three major charging-station operators simultaneously ended their collaboration with NaaS, disconnecting a meaningful percentage of network stations and ports.
- The Anji green and low-carbon project had reached 90% completion and was expected to undergo final acceptance in Q2 2024. The filing gives no company-wide revenue or earnings guidance.
Outlook, risks and contingencies
- Management expects continued operating and net losses in the near term and says further capital may be needed; it provides no quantified forward guidance. The company remains dependent on financing while operating cash flow is negative.
- Two energy-solutions customers contributed approximately 23% and 17% of FY2023 revenue, respectively. Customer concentration and collection risk are notable: net trade receivables were RMB73.1 million after an RMB60.5 million expected-credit-loss allowance; contract assets were RMB77.7 million net of impairment.
- Key risks include intense competition, EV-adoption uncertainty, the loss of charging-network partners, reliance on the Kuaidian operator and NewLink, evolving PRC data/privacy and overseas-listing rules, restrictions on moving cash out of China, and potential dilution from equity, warrants and convertible instruments.
- At December 31, 2023, RMB400.1 million of cash was held in mainland China, subject to foreign-exchange controls; RMB16.9 million was restricted to specified business uses. No significant contingencies were reported, and the company reported no material legal proceedings.
- The filing says management and the auditor considered internal control over financial reporting effective at year-end and that two previously identified material weaknesses were remediated. The 2023 audit opinion was unqualified. The company also disclosed a prior restatement of 2020–2021 financial statements and a change of auditor in April 2024.
Important facts for investors to verify
- Whether the Anji project received final acceptance and whether the resulting energy-solutions revenue, margins and cash collections are sustainable.
- The status and commercial impact of terminated charging-station partnerships, network station/port counts, and the terms and continuity of the Kuaidian third-party arrangement.
- Customer concentration, the aging and recoverability of receivables and contract assets, and the adequacy of credit-loss allowances.
- Liquidity runway and financing needs, including bank-loan maturities and covenants, convertible-note conversion terms and remaining balances, and potential dilution from outstanding securities.
- Whether PRC regulatory, data-security, cash-transfer and overseas-offering filing requirements could affect operations, financing or access to funds.
- Reconciliation of the filing’s convertible-note disclosures: it reports RMB272.7 million of bonds at year-end and elsewhere describes conversions and remaining principal as of the filing date; investors should confirm the current outstanding amount and terms.