According to CNBC, on November 20th, NAAS Technology (NAAS.US) released the unaudited financial report for Q3 2024. The data shows that the current gross margin of the company has significantly increased to a historical high of 57%, with the profitability of charging services reaching a record high proportion of 73%. This marks the first quarter of positive net operating income since going public. Since the second half of 2024, the company has focused on the interconnected charging business, accelerating the application of AI systems in the charging industry chain, which has significantly boosted performance.

Achieving a single-quarter positive net operating income for the first time, with a gross margin of 57% reaching a historic high.

Throughout this year, the company has continuously improved the ecological balance of charging supply and demand, driving the rapid application of the AI-driven NAAS Energy Fintech (NEF) system, which has had an immediate impact on operational efficiency. In Q3, the company achieved its first quarterly net operating income of 20.6 million yuan, with the proportion of profitable orders rising to 73% and the number of profitable orders reaching 30.53 million. At the same time, by optimizing the cost structure in the third quarter, the net loss rate achieved a historic low, significantly narrowing from 246% in the previous quarter to 19%.

The NEF system can accurately guide traffic flow at stations, optimize the operational strategies of charging stations, and achieve efficient matching of charging supply and demand. In addition, the company has strengthened cooperation with new energy OEMs, expanded third-party channels such as digital maps and post-vehicle services, enhancing customer acquisition capabilities. Driven by these factors, the company's Q3 revenue from charging services was 42.37 million yuan, a 36% year-on-year increase; the gross margin increased from 38% in the previous quarter to 57%, with a gross profit of 25.15 million yuan; the proportion of sales expenses to revenue decreased from 160% last year to 67%, confirming the profitability of the charging service business.

Wang Yang, the founder and CEO of NAAS Technology, stated that in the first three quarters of 2024, the sales of domestic electric vehicles exceeded expectations, with new car sales penetration rate surpassing 50% and accounting for 7.4% in total volume, driving rapid growth in charging service business. NAAS Technology achieved its first quarterly positive net operating income in history in Q3, thanks to its strategic focus on interconnected charging business and the comprehensive empowerment of the industry chain by the NEF system. In the future, the company will continue to expand the scale of charging station supply and enrich the entry points of charging service scenarios.

Strengthening ecological development on both supply and demand sides, covering 170+ new energy vehicle models.

NAAS Technology focuses on the interconnected charging business, continuously expanding the scale of its service network connecting charging stations and charging guns. The Q3 financial report shows that NAAS Technology has covered a cumulative total of 0.096 million charging stations, a year-on-year increase of 40%, and connected approximately 1.146 million charging guns, a year-on-year increase of 49%, both growth rates exceeding the industry average for the same period.

With the release of the incremental market for new energy private cars, the competition pattern of charging operators is becoming more decentralized. Operators are increasingly focusing on the precise diversion and efficiency improvement of aggregated charging platforms. In November 2024, Naas Technology reached a cooperative agreement on charging interconnection with State Grid Hebei Electric Vehicle Charging Service Company, connecting over 2,800 charging guns to the company's strategic partner Quick Charge App charging service network, enhancing the charging pile supply capabilities in areas such as Shijiazhuang, Baoding, Xingtai, Cangzhou, Handan, and Hengshui. Previously, a leading regional charging operator in Fujian connected to the company's charging network, adding 100+ charging stations and 1,600+ DC charging guns.

At the same time, the construction of the demand-side ecosystem has brought obvious entry effects, forming a widely covered multiple-scenario, multi-channel. The Q3 financial report shows that the company has added BYD, FAW-Volkswagen, NIO, Zhiqi, and Jiyue vehicle manufacturers' interoperability cooperation, including previous collaborations with Geely, Great Wall, GAC New Energy, Li Auto, NIO, etc., pre-installed in over 170 new energy vehicle models with large screens, covering the mainstream domestic new energy host factories. In addition, it has added access to multiple third-party channels in fields such as digital maps, after-sales service, etc., to build a user-centric matrix-like charging service network.

The expansion of the supply side scale and the broadening of the demand side entry have played a positive role in boosting the revenue, profit earning, and continuous enhancement of convenient, efficient, and intelligent charging experience.

AI-driven, NEF system significantly enhances operational efficiency and monetization capabilities.

In the second half of 2024, China's new energy vehicles witnessed explosive growth. The latest data from the China Passenger Car Association shows that in October of this year, the retail sales of new energy passenger vehicles reached 1.196 million, a year-on-year increase of 56.7%, and the sales penetration rate reached 52.9%, holding a dominant position for four consecutive months, sparking rapid growth in demand for charging services. Currently, there is a shortage of high-quality public charging piles in the industry, with low supply-demand matching efficiency. Introducing AI for full-chain optimization has become a mandatory task.

Based on artificial intelligence algorithms, NEF system launched by Naas Technology realizes comprehensive intelligence in station location planning, revenue assessment, operation scheduling, and maintenance, significantly improving station operational efficiency and profitability. Whether achieving quarterly operating profit in Q3, or reaching charging interconnection cooperation with leading charging operators and host manufacturers, and the growth of the supply and demand ecology, the NEF system plays an important driving role.

Currently, AI technology is accelerating its application in various industries, forming a rapid business driving force. Charging services, as a core application scenario of AI, have crossed the period of technology research and development investment. In the future, its monetization capabilities will become increasingly stronger.