Nano Labs Ltd (NA) Q2 2026 Earnings Call Transcript

Ladies and gentlemen, thank you for standing by. Welcome to NanoLabs' first half of 2026 earnings conference call. During today's call, all participants will be in listen-only mode. This conference is being recorded today, Friday 28, 2026. Joining us today from NanoLabs are the company's chairman and chief executive officer, Mr. Jingping Kong, and the company's chief financial officer, Mr. Bing Chen. On our call today, Mr. Kong will give you an overview of the company's performance, and Mr. Chen will show the details of the company's financial results. After that, we will conduct a question-and-answer session to take your questions. Before we continue, I would like to remind you that some information discussed on this call will contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the company's filings with the Securities and Exchange Commission. During today's call, Mr. Kong and Mr. Chen will deliver their remarks in Chinese, and the company's representative will provide corresponding English translations. With that, I will now turn the call over to Mr. Kong, the company's chairman and chief executive officer. Mr. Kong, please go ahead.

Thank you, operator and everyone for joining Nanolabs' first half of 2026 conference call today.

On our call today, I will provide an overview of our recent development and our strategic initiatives going forward.

Web3 行业持续走向成熟,全球市场市场也在经历深刻的结构性演变。 在这一背景下,我们愈发清晰地看到人工智能与 Web3 深度融合所带来的系统的机遇, 不仅将有志于重塑区块链基础设施,也正在催生新的应用场景与商业模式。 基于这一判断,NanoLabs 在今年上半年推出了新一代产品Apollo Cloud PC-A1 Mini,

in the first half of 2026, as the Web3 industry continued to measure the global digital asset market underwent profound structural evolution against this backdrop, we increasingly recognized the systematic opportunities arising from the deep integration of Artificial Intelligence and Web3. This convergence not only has the potential to reshape blockchain infrastructure, but also to unlock new application scenarios and business models. Guided by this perspective, NanoLabs launched its next-generation product, the Apollo Cloud PC-A1 Mini, during the first half of the year and continued to advance the development of open cloud ecosystem, spanning smart devices, operating systems, hardware, software, and application layers. 策略不仅有助于增强资产附带表的稳健性,也将为生态合作提供更坚实的支撑,并为未来战略布局预留更大的灵活性。

与此同时为进一步提升股东价值并彰显管理层对公司发展长期发展的信心,我们将继续推进于2025年10月宣布的最高2500万美元的股份回高计划。 截至2020年8月26日共计完成317万美金的Class A普通股票回购,并将长期稳步推进,展望未来Nano Labs将持续深耕 AIWeb三级下一代基础设施交汇带来的机遇,通过持续技术创新深化战略合作及生态系统的有序扩担,公司资历于进一步务实竞争优势,并为股东创造长期可持续价值。 The company continues to implement its digital asset reserve strategy.

Based on a long-term assessment of the digital asset market and the broader blockchain ecosystem, management has formally incorporated digital assets into the company's capital allocation framework as a strategic component. As of the date of this interim report, the company held a long-term reserve of 30,000 BNB. the company believes that a prudent and the simplified approach to digital asset allocation will not only help strengthen its balance sheets but also provide greater support for ecosystem collaboration and enhance flexibility for future strategic planning meanwhile to further enhance shareholder value and demonstrate management confidence in the company's long-term development The company continues to advance its share repurchase program of up to U.S. dollar $25 million. Originally announced in October 2025, as of August 2026, the company had completed repurchase of Class A ordinary shares for a total consideration U.S. dollar $3.2 million. and will continue to advance the program in a steady and disciplined manner over the long term. Looking forward, NanoLabs will continue to explore opportunities arriving from the converging of AI, Web3, and next-generation computing infrastructure. Through continuous technological innovation, deeper strategic partnerships, and ecosystem development, The company aims to strengthen its technological capabilities, extend its strategic footprint, and create sustainable long-term value for shareholders.

Thank you for your support and trust.

Next, I will turn the call over to our ship financial officer, Ms. Chen, for a closer review of our financial results. Ms. Chen, please go ahead.

Thank you very much.

Thank you, Mr. Kung. Good morning, everyone. On behalf of the management team, I will provide a brief financial overview of the first half of 2026. In the first half of 2026, our net value was RMB 2.8 million, US dollar 0.4 million, compared to RMB 8.3 million in the same period last year. This decrease in net value was primarily due to the drop-off sales volume of Apollo V series. We recorded a gross loss of RMB 5.8 million, US dollar 0.9 million for the first half of 2026 compared to RMB 10.7 million in the same period of the 2025. Cost of revenue for the first half of physical year 2026 is RMB 8.6 million, U.S. dollar 1.3 million compared to RMB 19 million in the center of 2025. The decline was mainly due to the decrease in sales volume.

2025年同期营业收入为人民币 2,129万元, 2020年上半残年,公司的销售费用较2025年同期的人民币262万元增长了17%,使人民币306万元或45万美元,主要原因是销售市场拓展力度的加大。 Total operating expenses for the first half of physical year 2026 were RMB 285.8 million, U.S. dollar 42 million, compared to the total operating income of RMB 21.3 million for the same period of 2025.

Selling and marketing expenses increased by 17% to RMB 3.1 million, U.S. dollars 0.4 million, for RMB 2.6 million for the same period of 2025. This increase was mainly due to the increase in sales marketing expansion. .

In the previous year, the management fees of the government in 2025, the total of the RMB of 2154,000,000, and it increased by 29.5% The RMB of 2790,000,000 or 410,000,000. The management fees increased by 410,000,000. The management fees increased by 2.790,000,000, and the total of the RMB of 2154,000 and the total of the RMB of 2154,000.

General and administrative expenses increased by 29.5% to RMB of 27.9 million. U.S. dollar 4.1 million for the first half of 2026, from RRB 21.5 million for the same period of 2025. The increase in general and administrative expenses was primarily due to the increase in professional fees and real estate-related taxes. Research and development expenses increased by 39.8% to RMB 4.4 million, U.S. dollar 0.6 million for the first half of 2026, from RMB 3.2 million from the same period of 2025. The increase in research and development expenses was primarily due to the increase in service fees of system development.

2025年同期供应价值变种收益为人民币4861万元 加密货币的供应价值损失的增加主要原因 是2026年上百年BNB价格的下跌

RMB 48.6 million for the same period of 2025. The increase in loss from change in fair value of cryptocurrencies was primarily due to the decreased BNB price during the first half of 2026.

2026 年上百财年的其他支出为人民币 1831 万元或 269 万美元, 2025 年同期为零,世界变动的主要归因于 2026 年上百年短期投资供应价值变动产生的亏损, 2026年上半财年,净亏损为人民币3.2亿元或4650万美元 2025年同期亏损为人民币1178万元 2026年上半财年,普通基本和稀释后的每股亏损为人民币13.65元或2美元 2025年同期普通股稀释后的每股亏损为人民币0.43元 截至2026年6月30日,公司现金等价务为人民币896万元或132万美元, 截至2025年12月31日,该数字为人民币850万元。 compared to a profit of RMB $10.6 million in the same period of 2025.

Other expenses were RMB $18.3 million, U.S. dollar $2.7 million for the first half of 2026 compared to now. For the same period of 2025, the change was mainly due to the loss of front change in fair value of short-term investments during the first half of 2026. Net loss was R&B 316.7 million, U.S. dollar 46.5 million for the first half of 2026 compared to R&B 11.8 million in the same period of 2025. Basic and diluted loss per share was R&B 13.65 U.S. dollar 2 for the first half of 2026 compared with basic and diluted loss per share of RMB 0.43 for the same period of 2025. As of June 30, 2026, the company had cash and cash equivalents of RMB 9.0 million, U.S. dollar 1.3 million, compared to RMB 8.5 million as of December 31, 2025. We remain confident in our business strategy and ability to evacuate. 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 question and answer season.

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're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Marina Rubano. Please go ahead.

Hi, good morning. Thank you for taking my question. So my question is, why has the company chosen to focus on AI-related business this year? 第一个问题是问孔总的 请问公司为什么选择在今年重点布局AI相关的业务 公司布局AI业务是基于行业发展趋势和企业长期战略发展综合决定 而公司深圳web3有区块链领域多年具备成熟的硬件开发分和搭建和产品运营能力 2026年上半年行业已经迈入AI与web3技术融合的全新发展周期

Goal公司决定在今年重点布局AI相关业务 目前已落地Apollo Cloud PC AI Mini 不仅支撑OpenCloud AI Agent的系统

未来公司还将持续完善OpenCloud软硬件 配套体系将进一步扩大业务板块

公司覆盖了游戏、娱乐、专业创作、智能办公等多元场景

Our expansion into AI is the result of a long-term strategic evaluation rather than a short-term market trend. Over the years, we have built solid capabilities in blockchain infrastructure, hardware development, ecosystem construction, and product operations. As AI and Web3 increasingly coverage, we see significant opportunities to leverage this strength to develop next-generation intelligent products. The launch of the Apollo Cloud PC-A1 Mini represents the first step in this strategy. Beyond supporting the OpenCloud AI agent system, the project is designed for practical applications across entertainment, content creation, and office productivity. Going forward, we will continue expanding both the hardware and software components of open cloud ecosystem to support broader AI adoption. Great, thank you.

Your next question comes from Alfred Wu.

Hello, my question is, what are the complete future plans for digital assets reserves? Thank you.

Okay, thank you. The second question is, what is the company's future plan?

The company's future plan is the long-term budget.

The assets have become an integral part of our long-term corporate strategy we have decided bnb as our core strategic reserve asset based on our assessment of its ecosystem potential and long-term value we intend to manage our reserve portfolio prudently by evaluating market conditions liquidity needs and strategic priorities before making any additional investment at the same time we will continue optimizing our overall digital asset allocation to enhance portfolio resilience while supporting future business development and ecosystem expansion. Okay, thank you.

Your next question comes from Olivia Bennett. Hi, how are you?

And my question is, what is the company long-term business development strategy? Thank you.

The third question is to ask the company's business development strategy.

Thank you.

Our long-term strategy is built on two complementary pillars. The first is maintaining a simplified digital asset reserve strategy, with BNB serving as a core strategic asset to support financial stability and long-term ecosystem development. The second is driving sustainable business growth through the integration of AI and Web3 technologies, Leveraging the already deployed Apollo Cloud PCA1 Mini as a starting point, we plan to continue expanding the open cloud ecosystem by introducing additional projects, strengthening our software platform, and exploring new commercial applications and business models. Together, these initiatives are intending to create a differentiated technology platform capable of supporting our future growth.

Our next question comes from Hannah Winslow. Okay. Good morning. Thank you so much for the presentation.

And my question is, what are the company's expectations for its operating performance in the second half of 2026? 这个是沉重的,公司对于2026年下半年业绩和股价表现有怎样的预期? Thank you very much. training in the second half of 2026 we will remain focused on executing our strategy of prioritize including advancing our digital asset initiatives and expanding our next generation AI product ecosystem as mr. Kong has already discussed this initiative in detail I will instead provide an update on our capital management efforts the company launched its share repurchase program in December 2025 as of June 30, 2026 we had repurchased an aggregate of 1,117,401 shares and we intend to continue executing the program in according with its term and the prevailing market conditions we believe the repurchase program reflects management confidence in the company's long-term prospect going forward we will continue strengthening our operation operating foundation executing our strategy initiative with this apply and

the creating sustainable value for our shareholders thank you that does conclude our question-and-answer session I'll now hand back for closing remarks Thank you very much. Thank you very much for joining the conference call.

If you have any questions, please contact us through email at ir.nano.cn or research our IR council's essence investor relations at tinatoxiaox at essenceplusir.com. Management will respond to your question as soon as possible. We appreciate your interest and support in NanoLabs and look forward to speaking with you again next time.

Thank you for attending NanoLabs' first half of 2026 earnings conference call. This concludes our call today, and we thank you all for listening.

Goodbye.