BEIJING - NaaS Technology Inc. (NASDAQ: NaaS), an electric vehicle (EV) charging service provider in China, has regained compliance with the Nasdaq's minimum bid price requirement, the company announced today. The compliance follows a previous notification of deficiency from the Nasdaq.
On June 13, 2024, NaaS received a deficiency notice from Nasdaq because the bid price for its American depositary shares (ADSs) fell below the $1.00 minimum threshold for 30 consecutive business days, violating the Nasdaq Listing Rule 5550(a)(2). To address the issue, the company needed to maintain a closing bid price of at least $1.00 for ten consecutive business days within a 180-day period.
According to the compliance notice received on June 28, 2024, NaaS Technology's ADSs have achieved the required minimum bid price from June 13 to June 27, 2024. With this recovery, the company has satisfied the conditions set by Nasdaq, effectively closing the matter.
NaaS Technology Inc. is recognized as the first U.S. listed EV charging service company operating in China. It is a subsidiary of Newlinks Technology Limited, a prominent energy digitalization group in China.
NaaS provides comprehensive solutions that include charging services and energy solutions for energy asset owners, supporting the lifecycle of energy assets and promoting the transition to sustainable energy sources.
The news of regaining compliance could reassure investors and stakeholders of the company's continued listing on the Nasdaq stock market. This announcement is based on a press release statement issued by NaaS Technology Inc.
In other recent news, NaaS Technology Inc., a leading electric vehicle charging service provider, reported robust growth in the first quarter of 2024. The company's revenue increased by an impressive 156% year-over-year, reaching RMB96.24 million.
This significant growth is attributed to their dual-engine model in the charging service industry. The company also reported an expansion of its gross margin to 25%, marking an 8.4 percentage point increase. NaaS Technology Inc. is making strides towards achieving positive EBIT by the end of the year.
In addition to its financial performance, NaaS Technology Inc. recently announced an update to its American Depositary Shares (ADS) ratio. The change, facilitated by JPMorgan Chase (NYSE:JPM) Bank, N.A., will be effective at the start of business on June 13, 2024, altering the current one ADS for 10 Class A ordinary shares ratio to one ADS for 200 Class A ordinary shares. This adjustment is equivalent to a one-for-twenty reverse ADS split.
Lastly, NaaS Technology Inc. has filed over 250 patent applications and joined the Open Invention Network, reinforcing its commitment to innovation in the charging infrastructure networks. These recent developments indicate the company's ongoing dedication to growth in the rapidly evolving electric vehicle charging service sector.
InvestingPro Insights
As NaaS Technology Inc. (NASDAQ: NAAS) celebrates regaining Nasdaq compliance, investors are keen to understand the company's financial health and market performance. According to InvestingPro data, NaaS currently holds a market capitalization of 37.26 million USD, illustrating the size of the company in the competitive EV charging market.
Despite the challenges, analysts are optimistic about the company's sales growth, expecting an increase in the current year which could signal a positive trajectory for the company's revenue stream.
Still, the company's financials also reveal some concerns. With a negative P/E ratio of -0.34 and an adjusted P/E ratio for the last twelve months as of Q1 2024 standing at -0.2, NaaS appears to be facing profitability issues.
This is further underscored by the company's significant operating income loss of 157.59 million USD during the same period, which is reflected in an operating income margin of -299.31%. These figures may raise questions about the company's ability to sustain its operations without additional financing or strategic adjustments.
InvestingPro Tips highlight that NaaS operates with a significant debt burden and may have trouble making interest payments on its debt, which is a critical factor for investors to consider. Additionally, the stock's high volatility is evidenced by its 1-week price total return of -49.12% as of mid-2024, indicating that the stock price has experienced substantial fluctuations.
For investors looking for more comprehensive analysis and insights, InvestingPro offers a range of additional tips to consider. There are 18 more InvestingPro Tips available for NaaS, which can be found at https://www.investing.com/pro/NAAS. To access these valuable insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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