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DATE
Friday, Aug. 15, 2025 at 8:30 a.m. ET
Call participants
Chief Executive Officer — Jianping Kong
Chief Financial Officer — Bing Chen
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Risks
Revenue decline— Reported net revenue fell to RMB 8,280,000 (USD 1,160,000) from RMB 24,740,000 in the same period of 2024, driven by a drop in Apollo V series sales volume.
Gross loss— The company recorded a gross loss of RMB 10,710,000 (USD 1,500,000).
Inventory and VAT write-downs— Cost of revenue included write-downs of inventory and value-added tax recoverable, negatively impacting gross results.
Takeaways
Net revenue-- Net revenue was RMB 8,280,000 (USD 1,160,000), driven lower by reduced Apollo V series sales.
Gross margin-- RMB 10,710,000 (USD 1,500,000) gross loss, compared to a prior gross profit of RMB 30,000 in the same period of 2024; margin deterioration linked to sales decline and write-downs.
Cost of revenue-- Cost of revenue was RMB 18,990,000 (USD 2,650,000), down from RMB 24,710,000 in the same period of 2024, attributed primarily to lower sales and inventory adjustments.
Total operating expenses-- Total operating expenses were RMB 27,330,000 (USD 3,820,000), a 53.5% decrease from RMB 58,720,000 in the same period of 2024, reflecting broad cost reductions.
Selling and marketing expenses-- Selling and marketing expenses were RMB 2,620,000 (USD 370,000), down 39.6% for the first half of 2025 compared to the same period in 2024, mainly due to lower commissions and salaries.
General and administrative expenses-- These were largely from decreased professional fees and salary expenses.
Research and development expenses-- These were the result of a strategic R&D realignment.
Loss from operations-- Loss from operations was RMB 38,030,000 (USD 5,310,000), compared with a loss from operations of RMB 58,690,000 in the same period of 2024.
Net loss-- Net loss was RMB 11,780,000 (USD 1,650,000), compared to a net loss of RMB 59,150,000 in the same period of 2024.
Loss per share-- Basic and diluted loss per share was RMB 0.43 (USD 0.06), compared to basic and diluted loss per share of RMB 8.46 in the same period of 2024.
Cash and cash equivalents-- RMB 3,060,000 (USD 50,770,000) in cash and cash equivalents as of June 30, 2025, compared with RMB 32,430,000 as of December 31, 2024.
BNB holdings-- Over 128,000 BNB held as a core reserve asset, marking a clear pivot toward cryptocurrency reserves.
Strategic BNB reserve plan-- CEO Jianping Kong said the company "will adopt diversified approaches to advance our BNB strategic reserve plan, including acquiring, controlling, or minority stakes in BNB strategic reserve companies, as well as investing in enterprises with strong ecosystem synergies."
Future asset allocation-- CEO Jianping Kong noted a potential for future diversification by stating, "In the future, we do not rule out allocating a small portion of diversified assets at the right time and in well-defined scenarios."
Financing priorities-- CEO Jianping Kong said, "The primary purpose of this financing is to support the continued expansion of our BNB strategic reserve scale."
Summary
Nano Labs(NA -11.56%) underwent a strategic transformation focused on expanding its cryptocurrency reserves, with BNB established as the core asset, and now holds over 128,000 BNB as of the Q2 2025 earnings call. Management detailed a sharp decrease in net revenue and gross margin, attributed specifically to lower Apollo V series sales and inventory adjustments, but noted aggressive cost discipline, with operating expenses decreasing by more than half (53.5%). Management outlined their intent to pursue continued expansion into cryptocurrency reserves, stablecoin sectors, and Web3 initiatives, supported by targeted financing to enlarge BNB positions.
Management indicated potential for minor portfolio diversification, but reiterated a focus on BNB to maintain strategic consistency.
The company's liquidity in cash and cash equivalents declined as of June 30, 2025, compared to December 31, 2024.
Leadership directly attributed cost reductions to deliberate adjustments in research and development, general administrative functions, and sales operations.
CEO Jianping Kong described BNB as "one of the most representative crypto assets" and emphasized its ecosystem maturity and long-term potential as driving reasons for its selection as the company’s reserve centerpiece.
Industry glossary
BNB: Binance Coin, a digital asset and utility token within the Binance exchange ecosystem, frequently used for transaction fees and staking.
Apollo V series: Nano Labs' high-performance computing mining hardware product line, referenced here as a primary revenue contributor.
CEA: An entity identified as a BNB reserve company in which Nano Labs made a strategic equity investment.
Web3: The next-generation decentralized web ecosystem built on blockchain technology, enabling distributed applications and asset ownership.
Full Conference Call Transcript
Jianping Kong: Hello. Thank you, operator, and everyone for joining Nano Labs Ltd's first half of 2025 earnings conference call today. On our call today, I will provide an overview of our recent development and our initiatives in the future. The year 2025 marks a major transformation for the company in light of the evolving industry landscape and the onset of a new market cycle. We focus our resources and efforts on expanding our work with strategic reserves as the market continues to embrace cryptocurrency transactions and cryptocurrency reserves. We have taken the decisive first step of concentrating our cryptocurrency reserve in BNB, ushering in a new stage of development.
As of the date of this earnings conference call, the company holds over 128,000 BNB. Meanwhile, building on our existing mining machine business, we continue to explore new market opportunities while maintaining stability in our current operations. Reviewing 2025, we have undertaken this decisive and strategic transformation since the beginning of this year. We accelerated our expansion and collaboration in the cryptocurrency field. Meanwhile, we undertook ambitious yet prudent initiatives to set up currency investments and reserves through various approaches, including the continuous expansion of our strategic cryptocurrency reserve using both financing and proprietary funds, as well as a strategic equity investment in CEA, a BNB reserve company, thereby solidifying our BNB strategic reserve layout.
At the same time, we expanded into the emerging stablecoin sectors as part of our diversified Web3 strategy. Looking forward, we remain vigilant for emerging opportunities and the vast potential for innovation in the laboratory space and the AI-driven transformative era. Through visionary and insightful strategic planning, along with decisive and consistent execution, we believe these efforts will generate substantial value for our stakeholders and drive long-term prosperity for the company. Thank you for your support and trust. Next, I will turn the call over to our Chief Financial Officer, Mr. Bing Chen, for a closer review of our financial results. Mr. Bing Chen, please go ahead.
Bing Chen: Thank you, Jianping Kong. Good morning, everyone. On behalf of the management team, I will provide a brief financial overview of 2025. In 2025, our net revenue was RMB 8,280,000, approximately USD 1,160,000, compared to RMB 24,740,000 in the same period last year. The decline was primarily due to the decreased sales volume of the Apollo V series product. We recorded a gross loss of RMB 10,710,000, approximately USD 1,500,000 for 2025, compared to a gross profit of RMB 30,000 in the same period of 2024. Cost of revenue for 2025 was RMB 18,990,000, approximately USD 2,650,000, compared to RMB 24,710,000 in the same period of 2024.
The decline was mainly due to the decrease in sales volume and write-down of inventory and value-added tax recoverable. Total operating expenses for 2025 decreased by 53.5% to RMB 27.33 million, approximately USD 3,820,000, down from RMB 58,720,000 in the same period of 2024. Selling and marketing expenses dropped by 39.6% to RMB 2,620,000, approximately USD 370,000, compared to RMB 4,330,000 in the same period of 2024. This decrease was mainly due to the decrease in sales commission and salaries. General and administrative expenses decreased by 15.4% to RMB 21,540,000, approximately USD 3,010,000 for 2025, from RMB 25,450,000 for the same period of 2024.
The decrease in general and administrative expenses was primarily due to the decrease in professional fees and employee salary expenses. Research and development expenses decreased by 89.1% to RMB 3.2 million, approximately USD 440,000 for 2025, from RMB 28,930,000 for the same period of 2024. The decrease in research and development expenses, including salary expenses, design fees, service fees, material costs, etc., was mainly due to the strategic adjustment in research and development activities in 2025. Loss from operations was RMB 38,030,000, approximately USD 5.31 million for 2025, compared with a loss from operations of RMB 58,690,000 for the same period of 2024.
Net loss was RMB 11,780,000, approximately USD 1,650,000 for 2025, compared to a net loss of RMB 59,150,000 in the same period of 2024. Basic and diluted loss per share was RMB 0.43, approximately USD 0.06 for 2025, compared to basic and diluted loss per share of RMB 8.46 in the same period of 2024. As of June 30, 2025, the company had cash and cash equivalents of RMB 3.06 million, approximately USD 50,770,000, compared with RMB 32,430,000 as of December 31, 2024. We remain confident in our business strategies and ability to execute them. We will continue to leverage the strengths of our technology to capture development opportunities, drive long-term growth, and create additional value for our shareholders.
Now I would like to turn the call over to the operator for the question and answer session.
Operator: Thank you. If you wish to ask a question, please press 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press 2. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Claire Harrison. Please go ahead.
Claire Harrison: Thank you, management team. My question is why has the company chosen BNB as its core reserve asset? Thank you.
Jianping Kong: BNB, as one of the most representative crypto assets, not only has a highly active ecosystem but also demonstrates outstanding long-term growth potential and resilience, supported by its model and platform value. Therefore, we hold BNB as a key cryptocurrency for our core strategic objective. Thanks.
Operator: Your next question comes from Armstrong Wu.
Armstrong Wu: Hello. My question is, regarding your focus on BNB, what parameters will the company take to strengthen its strategy with reserves? Thank you.
Jianping Kong: We will adopt diversified approaches to advance our BNB strategic reserve plan, including acquiring, controlling, or minority stakes in BNB strategic reserve companies, as well as investing in enterprises with strong ecosystem synergies. These diversified measures will help us build a more stable strategic layout. Thanks.
Operator: Your next question comes from Ella Rosenblatt.
Ella Rosenblatt: Hi. My question is will the company consider reserving other cryptocurrencies, or will it focus solely on BNB?
Jianping Kong: Currently, the company is focused on BNB as its core reserve asset based on a comprehensive assessment of BNB's ecosystem maturity, asset stability, and long-term growth potential. However, we will continue to monitor other crypto assets with strategic value and ecosystem support. In the future, we do not rule out allocating a small portion of diversified assets at the right time and in well-defined scenarios to optimize our portfolio and enhance resilience against market cycles. Overall, though, our company will remain centered on BNB to maintain strategic focus and expansion strategy. Thanks.
Operator: Your next question comes from Irina Ravana.
Irina Ravana: Hi, thank you. Does the company have any financing plans for 2025, and what are the considerations behind such plans?
Jianping Kong: Of course, for that one, we are focused on the company's initiatives and partially concrete strategy financing in 2025. The primary purpose of this financing is to support the continued expansion of our BNB strategic reserve scale. Going forward, we will continue to consider various financing options to further support the growth of our BNB strategy with sales plans, thereby ensuring better execution of our Web3-related business initiatives. Thank you.
Operator: And that concludes the question and answer session. Let me turn the call over to Mr. Bing Chen for closing remarks.
Bing Chen: Thank you very much for joining this conference call. If you have any questions, please contact us through email at ir.nano.cn or reach our IR counsel at [email protected]. Management will respond to your questions as soon as possible. We appreciate your interest and support in Nano Labs Ltd and look forward to speaking with you again next time. Thank you.
Operator: Again, thank you for attending Nano Labs Ltd's first half of 2025 earnings conference call. This concludes our call for today, and we thank you all for listening in. Goodbye.
Jianping Kong: Goodbye.