NaaS Technology Inc. (NAAS, Financial), a leading player in China's charging service sector, has marked a significant milestone by achieving its first quarterly operating profit in Q3 2024. The company's revenue from charging services reached 42.37 million yuan, a 36% increase compared to the previous year, while its gross profit margin improved to 57%, with a gross profit of 25.15 million yuan. Sales expenses as a percentage of revenue decreased from 160% in Q3 last year to 67% this year, resulting in an operating profit of 20.6 million yuan.
This achievement highlights NaaS's transition from a period of loss-driven expansion to a phase of profitability and growth, similar to the trajectories of other major tech companies like Amazon and Facebook. The company's improved financials demonstrate its business value and potential for market revaluation.
The key to NaaS's profitability lies in its increased proportion of profitable orders, which reached 73%, amounting to 30.53 million orders. The company has optimized its cost structure, reducing the net loss rate from 246% in the previous quarter to 19%. This indicates a decreased reliance on user subsidies and a diversified market acquisition strategy, enhancing the value of its charging service platform to partner operators.
NaaS's gross profit margin reached a record high due to strategic focus on connectivity and AI technology, moving away from low-margin offline businesses to an online, asset-light platform model. The NEF (NaaS Energy Fintech) platform has significantly boosted operational efficiency and business value through data-driven insights and investment risk reduction for operators.
As of mid-2024, China had 24.72 million new energy vehicles, with a domestic retail penetration rate exceeding 50% for four consecutive months. NaaS's revenue is poised for substantial growth as the EV charging market expands and operational efficiency improves, potentially leading to sustained profitability.
In 2024, NaaS focused on expanding its charging network, covering 96,000 stations and connecting approximately 1.146 million charging guns, surpassing industry growth rates. With strategic partnerships across the supply-demand ecosystem, NaaS has integrated with over 170 new energy vehicle models, significantly broadening its service platform.
Looking ahead, NaaS's scalable, asset-light business model is expected to enhance its profitability as the company continues to grow and refine its ecosystem. The booming EV market in China further underscores the investment potential in NaaS, with room for significant revenue growth.
