NaaS Technology Inc. (NASDAQ:NAAS) Q3 2024 Earnings Conference Call November 20, 2024 8:00 AM ET

Company Participants

John Wang - Investor Relations Director
Kathy Wang Yang - Chief Executive Officer
Steven Sim - Chief Financial Officer

Conference Call Participants

Ting Song - Goldman Sachs
Ethan Zhang - Nomura

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the NaaS Third Quarter 2024 Earnings Conference Call. At this time, all participants are in listen-only mode. I must advise you that this conference is being recorded.

I would now like to turn the conference over to your first speaker today, Mr. John Wang, the company's Investor Relations Director. Thank you, and please go ahead.

John Wang

Thank you, operator. Hello, everyone, and welcome to NaaS third quarter 2024 earnings conference call.

The company's results were issued earlier today and are posted online.

Joining me on the call today are Ms. Kathy Wang Yang, our Chief Executive Officer, and Mr. Steven Sim, our Chief Financial Officer.

For today's agenda, Ms. Wang will provide an overview of our business highlights and Mr. Sim will discuss our operating results and go through our financial highlights.

Before we continue, I refer you to our safe harbor statement in the earnings press release, which applies to this call as we will make forward-looking statements.

Also, please note that this call [includes] (ph) discussions of certain non-IFRS financial measures. Please refer to our earnings release, which contains a reconciliation of non-IFRS measures to the most comparable IFRS measures.

Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB.

I will now turn the call over to our CEO, Ms. Kathy Wang Yang. Kathy, please go ahead.

Kathy Wang Yang

[Foreign Language]

[Interpreted] Hello, everyone. I'm NaaS' CEO, Kathy Wang Yang. Today, I'm excited to share our performance highlights for the third quarter of 2024 and take this opportunity to update our investors on our business progress.

[Foreign Language]

[Interpreted] First, I'd like to announce a significant milestone. After achieving operational breakeven in June during the second quarter, we delivered a positive non-IFRS net profit for the first time in a single quarter through strategic iteration, cost reduction and efficiency gains and technological advancement. In the third quarter, our non-IFRS net profit reached RMB20.6 million.

[Foreign Language]

[Interpreted] Our core charging services business reported revenues of RMB42.37 million in the third quarter, a year-over-year increase of 36%. By strategically concentrating on high-growth, high-margin core charging services, our overall gross margin has improved for four consecutive quarters, reaching an all-time high of 57% in the third quarter. This move is clearly producing positive outcomes.