Nano Labs Ltd (NA) Q4 2025 Earnings Call Transcript

Thank you for standing by, and welcome to the NanoLabs Limited second half 2025 earnings conference call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. Kong, CEO of the company. Please go ahead. Mr. Kong, you can now begin your presentation.

Thank you, Operator and everyone for joining NanoLab's second half of 2025 earnings conference call today. On our course today, I will provide an overview of our recent development and our strategic initiatives going forward. The year 2025, the Web3 industry experienced robust growth with continuing to improve global crypto market environment, including enhanced crypto assets, infrastructure, and increasing market participation. The crypto market and Web3-related sectors entered a new phase of growth and opportunity. Following a comprehensive and prudent internal assessment of the strategic value and long-term perspectives of BNB, we initiated and continue to advance to the build-out of our BNB As of December 31, 2025, the company held a total of 126,662 BNBs along with a receivable collateral of 3,338 BNB by steadily increasing our BNB holdings. We have optimized our crypto assets allocation and created favorable conditions for the future business expansion and ecosystem cooperation. In terms of capital operations, we successfully completed two rounds of financing in 2025, providing strong support for our strategic transformation, expansion of our crypto asset reserves, and the exploration of new business directions.

Cloud PC A1 Mini 该产品自在支持OpenCloud AirAgent系统 未来我们还计划陆续推出CloudOS系统及更多的硬件产品 进一步拓展AirAgent的全链路生态服务能力 与此同时为进一步提升股东价值并当下工作管理层 对工作长期发展的信心 我们于2025年10月宣布了一项最高达2500万美元的股份回购计划 In March 2026, we officially launched our next generation product, the Akulu Cloud PC-A1 Mini,

designed to support the open cloud AI agent system. Going forward, we plan to introduce the cloud OS system and additional hardware products to further expand our forestry ecosystem services for AI agents. Meanwhile, to enhance shareholder value and demonstrate management's confidence in the company's long-term development, we announced a share repurchase program of up to $25 million in October 2025. The program has commenced and is expected to be implemented daily over the long time. Looking ahead, we will continue to closely monitor industry trends and market dynamics. While maintaining stable operations, we will further advance our crypto assets strategic reserves and actively explore broader opportunities with the AI agent ecosystem.

Thank you for your support and trust.

Next, I will turn the call over to our Chef Financial Officer Mr. Chen for a closer review of our financial results. Mr. Chen, please go ahead.

Thank you very much.

Thank you, Ms. Kong. Good morning, everyone. On behalf of the management team, I will provide a brief financial overview of the second half of 2025. In the second half of 2025, our net revenue was RMB 18.7 million equals to 2.7 million U.S. dollars compared to RMB 50.9 million in the same period last year, increased of 18.1%. This increase was primarily due to the increase in shelf volume of the Apollo 5 series product. We recorded a gross loss of RMB 29.1 million equals to 4.1 million US dollars for the second half of 2025, compared to a gross profit of RMB 11.6 million in the same period of 2024. Cost of revenues for the second half of fiscal year of 2025 were RMB 47.8 million equals to 6.8 US dollar million, compared to RMB 4.3 million in the same period of 2024. The decline was mainly due to the write-downs of inventories and value-added tax recoverable.

2025年下半财年的总营业收入上升233.9% 至人民币8,990万元或1,280万美元 2020年同期营业出为人民币6,710万元 2025年下半财年 公司的销售费用较2020年同期的人民币480万元 下降了56.2%, so人民币210万美元或30万美元

主要原因是人工薪金支出的减少 Total operating income for the second half of physical year 2025 increased by 233.9% to RMB 89.9 million equals to 12.8 million US dollar increased from R&B 67.1 million in the same period of 2024. Selling and marketing expenses dropped by 56.2% to R&B 2.1 million equals to 0.3 million U.S. dollar compared to R&B 4.8 million in the same period of 2024. This decrease was mainly due to the decrease in employee salary expenses.

In the same year, the average income of 2540,000 yen is increased by 3310,000 yen or 170,000 yen. The increase is mainly because of the increase in the business and business.

General and administrative expenses increased by 30.3% to RMB 33.1 million, equals to 4.7 million USD for the second half of 2025. From RMB 25.4 million for the same period of 2024, the increase in general and administrative expenses was primarily due to the increase in professional service fees. 使工资指出材料费和设备费用的减少。 Research and development expenses decreased by 76.9% to RMB 4.9 million, equal to 0.7 million US dollar for the second half of 2025, from RMB 21.2 million for the same period of 2024. The decrease in research and development expenses was primarily due to the decrease in salary expenses, material fees and equipment fees. 由于BNB持有者获得的BN平台空投收益以及加密货币投资产品的收益

2025年下半台年,净利润为人民币1.377亿元或1960万美元 2020年同期净亏为人民币6040万元 2025年下半台年,普通股基本和稀释后的每股收益为人民币6.2元或0.9美元 2020年同期普通股基本和稀收货的每股亏损为人民币6.0元 截至2025年12月31日公司现金及现金本价为人民币850万元或120万美元 截至2024年12月31日该数字为人民币3,270万元

Profit from operations was R&B 60.8 million equals to $8.7 million for the second half of 2025, compared with loss from operations of R&B 55.6 million for the same period of 2024. Other income was R&B 38.2 million equals to $5.4 million for the second half of 2025, compared to R&B 1.7 million for the same period of 2024. The change was due to the Binance launch port and the airdrop income for BNB holders and income for crypto investment products. Net income was R&B 137.7 million equals to $19.6 million for the second half of 2025 compared to a net loss of RMB 60.4 million in the same period of 2024. Basic and diluted earnings per share was RMB 6.2 equals to 0.9 US dollar for the second half of 2025 compared to basic and diluted loss per share of RMB 6 in the same period of 2024. As of December 31, 2025, the company had cash and cash equivalents of RMB 8.5 million equals to 1.2 million US dollars, compared with RMB 3284 million as of December 31, 2024. We remain confident in our business strategy and ability to execute it. We will continue to leverage the strength of our technology to capture development opportunities, drive long-term growth, and create additional value for our shareholders. Now I would like to turn the call over to the operator for questions and answer session.

Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you are on a speakerphone, please pick up your handset to ask your question. The first question today comes from Irina Rubano with a private investor. Please go ahead.

Hi. Thank you for the presentation. My question is, what is the company's long-term strategic plan regarding its BNB holdings?

持有并在合适的实际稳步增持BnB, 保持相对稳定的BnB储备规模, 这一策略能有助于提升公司数字资产的配置能力,

同时能加强于外部上生产的协同 为公司长期战略发展提供稳定的基础资产。 Okay, after comprehensively evaluating the development trends of crypto assets and the long-term potential of BnB, Our company has designated BNB as a core component of its crypto assets strategic reserves. Over the long term, we plan to continue holding BNB and to gradually increase our holding at appropriate times, maintaining a relatively stable reserve level. This strategy is expected to enhance the company's crypto assets allocation capabilities while strengthening synergies with the Web3 ecosystem, thereby providing a solid asset foundation for the company's long-term strategic development.

Thank you.

The next question comes from Alfred Wu, a private investor. Please go ahead.

Alfred, your line is open. You may ask your question. Perhaps your line is muted, Alfred. Please ask your question.

We appear to have lost connection with Alfred. The next question comes from Claire Harrison, a private investor. Please go ahead.

Okay, thank you, Benjamin. I have some questions. My first question is, why did the company launch a share of red purchase program?

Thank you.

In October 2025, we announced a share repurchase program of up to $25 million based on the following considerations. First, to enhance shareholder value and deliver long-term returns. Second, to demonstrate management's positive outlook on the company's long-term development. Third, to signal confidence in the company's long-term growth and operations to the capital market. The company will implement the repurchase program in a steady and disciplined manner over time. taking into account market conditions and capital allocation plans.

Thank you. And my second question is, what was the rationale behind the launch of the iPod Cloud PC A1 Mini product?

I would like to ask the company's currently推出 iPod Cloud PC A1 Mini product and what's the reason for it is.

As you know, the company's currently推出 the iPod Cloud PC A1 Mini product is open cloud. Apollo PC A1 Mini是公司推出的 新一代AI Agent的硬件产品 用于支持OpenCloud AI Agent的系统 公司认为AI Agent很有可能成为 下一代智能应用的重要形态 因此选择提前布局相关的基础设施 目前公司已经迅速在市场上 占据很高的品牌声量 产品销售和生态布局都在稳步推进中 未来已经要上线Cloud OS系统 和更多的Agent硬件 以支持Agent全力找生态服务

Thank you. As you may know, one of the most prominent concepts in the AI space today is OpenCloud. The Apollo Cloud PC-A1 Mini is a company's next generation AI agent well-produced product that designed it to support the OpenCloud AI agent system. We believe that AI agents are likely to become a key form of next generation intelligent and has therefore choosing to proactively invest in the related infrastructure. Our company has already gained significant brand visibility in the market with the product sales and ecosystem development progressing. Going forward, we plan to launch the cloud OS system and additional agent hardware products to support a 4chan AI agent ecosystem.

The question comes from Ella Rosenblatt, a private investor. Please go ahead.

Hi, management team. Thank you for your presentation. So my question is, what are the company's key long-term business development directions?

Next question, what is the main business development development development development? Our company's future business development will focus on two primary directions. First, crypto asset reserve strategy, continuing to advance SBMB centered crypto asset reserve strategy and the steadily expanding asset allocation when market conditions are favorable. Second, AI agent ecosystem development, advancing the launch and the commercialization of hardware products such as the Apollo Cloud PC, introducing the Cloud OS system and building an AI agent application and the service ecosystem to capture opportunities arising from the transition from Web 3 to Web 4.

Thank you for your question. Please go ahead. And that concludes the question and answer session.

Let me turn the call back over to Mr. Chen for closing remarks.

Thank you very much for joining us today's conference.

Thank you very much for joining us. this conference call. If you have any questions, please contact us through email at ir at nano.cn or reach our IR console, Ascent Investor Relations at tina.xiao at ascentir.com. Management will respond to your questions as soon as possible. We appreciate your interest and support in NanoLabs and look forward to speaking with you again next time.

Thank you again for attending Nanolab's second half of 2025 earnings conference call. This concludes our call today, and we thank you all for your listening in. Goodbye.