Business Context and Reporting Period
This Form 6-K filing by NaaS Technology Inc. covers the nine months ended September 30, 2023, with a report date of October 31, 2023. The company operates in the energy asset sector, focusing on EV charging stations, photovoltaic (PV) assets, and energy storage. Effective Q3 2023, the company reclassified its revenue streams into three categories: Charging services, Energy solutions, and New initiatives. This filing includes unaudited consolidated financial statements prepared under IFRS, with prior periods recast to align with the new presentation.
Key Financial Metrics
| Metric | 9 Months Ended Sep 30, 2022 (RMB) | 9 Months Ended Sep 30, 2023 (RMB) | 9 Months Ended Sep 30, 2023 (US$) |
|---|---|---|---|
| Total Revenues | 63,359 | 255,719 | 35,049 |
| Gross Profit | (1,018) | 72,052 | 9,875 |
| Gross Margin | -1.6% | 28.2% | 28.2% |
| Operating Loss | (2,337,226) | (680,111) | (93,217) |
| Net Loss | (5,510,509) | (809,222) | (110,913) |
| Net Loss Attributable to Equity Holders | (5,510,509) | (811,183) | (111,182) |
| Cash and Cash Equivalents (Sep 30, 2023) | N/A | 396,072 | 54,286 |
| Total Assets (Sep 30, 2023) | N/A | 1,809,946 | 248,074 |
| Total Liabilities (Sep 30, 2023) | N/A | 1,639,405 | 224,699 |
| Convertible Notes (Current Liability) | 0 | 503,888 | 69,064 |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 304% year-over-year (YoY) to RMB 255.7 million. This was driven primarily by Energy solutions revenue, which surged 11,400% to RMB 171.1 million due to project execution (e.g., Anji Green Project) and the consolidation of Sinopower Holdings. Charging services revenue grew 35% to RMB 81.5 million.
- Profitability Improvement: The company moved from a gross loss of RMB 1.0 million in 2022 to a gross profit of RMB 72.1 million in 2023, improving gross margin from -1.6% to 28.2%.
- Operating Expenses: Total operating expenses decreased 67% to RMB 764.1 million. This reduction is largely attributable to the absence of RMB 1.9 billion in one-time equity-settled listing costs recognized in the prior year. Excluding these one-time costs, operating expenses as a percentage of revenue improved from 682.6% to 298.8%.
- Net Loss Reduction: Net loss attributable to ordinary shareholders decreased significantly from RMB 5.5 billion to RMB 811.2 million, primarily due to the removal of the one-time listing costs and fair value changes of preferred shares in the prior period.
- Liquidity and Debt: Cash and cash equivalents decreased from RMB 513.4 million (Dec 31, 2022) to RMB 396.1 million (Sep 30, 2023). Current liabilities increased substantially, driven by the addition of RMB 503.9 million in convertible notes and higher trade payables.
Guidance, Outlook, and Risks
- Strategic Focus: Management is dedicating more resources to energy assets operations, including EV charging, renewable energy, and energy storage systems.
- Operational Challenges: In late August 2023, three major charging station operators terminated collaborations, causing a temporary reduction in charging volume. The company responded with user incentives, achieving a rebound by September. Charging volume for the nine months ended Sep 30, 2023, reached 3,634 GWh, a 91.6% increase YoY.
- Project Outlook: The Anji Green and Low-carbon Supply Chain Construction Project is expected to be completed in Q4 2023.
- Non-IFRS Measures: Non-IFRS net loss attributable to ordinary shareholders was RMB 386.0 million for the nine months ended Sep 30, 2023, compared to RMB 242.3 million in the prior year. This metric excludes share-based compensation, listing costs, and fair value changes.
- Risks: The filing notes that historical results are not indicative of future performance. The company faces competition in the charging service industry and relies on the successful execution of large-scale energy solution projects.
Investor Verification Checklist
- Revenue Reclassification: Verify the impact of the new revenue categorization (Charging, Energy Solutions, New Initiatives) on historical comparability.
- One-Time Costs: Confirm the exclusion of RMB 1.9 billion in equity-settled listing costs from the 2023 operating expense comparison to understand true operational leverage.
- Debt Structure: Review the terms and maturity of the RMB 503.9 million in convertible notes added to current liabilities.
- Customer Concentration: Assess the risk associated with the termination of partnerships with three major charging operators and the sustainability of the rebound in charging volume.
- Project Execution: Monitor the completion and revenue recognition of the Anji Green Project and Sinopower consolidation impacts in Q4 2023.