BEIJING - NaaS Technology Inc. (NASDAQ:NAAS), a pioneer in electric vehicle (EV) charging services in China, has reported a significant expansion of its charging network. As of September 30, 2024, the company has connected about 1.15 million chargers, marking a 30% increase since the end of 2023. This growth rate surpasses the national average of 22% for the same period, according to the China Electric Vehicle Charging Infrastructure Promotion Alliance.
The company's CEO, Ms. Yang Wang, highlighted the progress as evidence of NaaS's commitment to improving China's EV charging infrastructure and its focus on delivering efficient and accessible charging solutions nationwide. The use of AI-powered technologies and the NaaS Energy Fintech system is credited with enhancing partner profits, operational efficiency, and providing predictive maintenance and strategic site selection services.
NaaS's CFO, Mr. Steven Sim, emphasized the strategic nature of the company's expansion and its reliance on digital and AI innovations to increase efficiency and profitability for charging operators. He also noted the added convenience for users and the creation of long-term value for stakeholders.
The company, which is a subsidiary of Newlinks Technology Limited, plans to continue investing in its technological capabilities and expanding its supply-side infrastructure. Through strategic partnerships, NaaS aims to support growth in both supply and demand within the EV charging sector and deliver value to operators and consumers.
This expansion is part of NaaS's broader strategy to facilitate energy transition and provide comprehensive solutions throughout the lifecycle of energy assets. The company's growth in charger connections is a key step in its mission to support the development of an interconnected EV charging network across China.
The information provided is based on a press release statement, and it should be noted that forward-looking statements involve risks and uncertainties. NaaS Technology Inc. has made these statements under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and does not guarantee future results as actual outcomes may differ.
In other recent news, NaaS Technology Inc. has reported significant strides in its operations. The company marked a key milestone by achieving its first positive average monthly profit in June 2024, bolstered by an impressive 89% year-over-year revenue growth, primarily driven by charging services and energy solutions. However, NaaS recorded a net loss in Q2 2024, marking the lowest historical net loss margin for a second quarter.
In a strategic move, NaaS expanded its EV charging network using artificial intelligence and industry partnerships, aiming to meet the supply and demand aspects of China's rapidly growing EV charging market. The company also announced a partnership with IM Motors to enhance the EV charging experience for its customers.
In personnel changes, Steven Sim was appointed as the new Chief Financial Officer following Alex Wu's resignation. These developments underscore NaaS Technology Inc.'s commitment to maintaining its leadership in China's fast-evolving EV charging service industry.
InvestingPro Insights
While NaaS Technology Inc. (NASDAQ:NAAS) reports significant expansion in its charging network, recent financial data from InvestingPro paints a more complex picture of the company's current position.
InvestingPro data shows that NaaS has experienced remarkable revenue growth, with a 199.95% increase in the last twelve months as of Q2 2024. This aligns with the company's reported network expansion and strategic focus on the growing EV charging market in China.
However, investors should note that despite this top-line growth, NaaS is currently operating at a loss. The company's operating income margin stands at -209.99%, indicating significant challenges in translating revenue growth into profitability. This is further emphasized by an InvestingPro Tip which suggests that NaaS "May have trouble making interest payments on debt."
The stock's performance has also been concerning, with InvestingPro data showing a -95.48% price total return over the past year. This substantial decline suggests that market sentiment has been heavily impacted by the company's financial challenges, despite its operational growth.
For investors considering NaaS, it's crucial to weigh the company's expansion against its financial health. InvestingPro offers 13 additional tips for NAAS, providing a more comprehensive analysis for those looking to delve deeper into the company's prospects.
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