NaaS Technology Inc.

Q3 2024 non-IFRS net profit was RMB20.6 million, versus a loss of RMB39.9 million in Q2 and a loss of RMB174 million in Q3 last year. Core charging services revenue was RMB42.37 million, up 36% year over year; Energy Solutions revenue was RMB0.56 million. Gross margin reached 57%, up from 29% in the same period last year and 38% in Q2, and gross profit increased 19% quarter over quarter to RMB25.1 million from RMB21.1 million. Selling expenses fell from RMB50.9 million in Q2 to RMB29.7 million in Q3, and total operating losses decreased by RMB39 million quarter over quarter, a 44% reduction. Management did not provide formal next-quarter or full-year numeric guidance, but said Q4 2024 and full-year 2025 priorities will center on profitability, scale, and technology, with continued focus on core charging services and higher margins.

Kathy Wang Yang said the quarter marked a major milestone because NaaS delivered its first positive quarterly non-IFRS net profit after reaching operational breakeven in June. Her message was centered on strategic simplification: concentrate on high-growth, high-margin core charging services, use technology to improve allocation and efficiency, and step away from lower-margin, capital-intensive businesses. She sounded upbeat and framed the shift as laying a more sustainable growth foundation.

Steven Sim emphasized that profitability improved because of the move away from Energy Solutions and toward an asset-light platform model. He cited gross profit of RMB25.1 million, gross margin of 57%, selling expenses down to RMB29.7 million from RMB50.9 million in Q2, administrative expenses down 15.5% quarter over quarter, and operating losses down by RMB39 million quarter over quarter. He also said operating expenses were down 70% year over year, supported by cost controls, subsidy optimization, and better operating leverage as the business scales.

Analysts focused on how NaaS achieved the margin inflection, whether profitability can be sustained, and what is happening with user subsidies. Management said the margin improvement came from higher-margin charging services, cost controls, and scaling the platform, while sustained profitability should be supported by continued growth in connected chargers and transaction users. On subsidies, management said the company has gradually reduced them since early 2024, arguing that the market is more stable and that stronger organic growth, better user experience, and improved take rates are offsetting the lower subsidy intensity.