According to the announcement, the company's core strategy—its charging service business—has shown strong growth, contributing RMB 42.37 million in revenue, a 36% year-over-year increase, accounting for 95% of total revenue. This highlights the success of the company’s strategic focus, which also resulted in a significant increase in gross profit margin. In Q3 2024, the gross profit margin reached a record-high 57%, up from 38% in the previous quarter. Notably, the company achieved a critical milestone this quarter by recording its first-ever positive net profit. Non-IFRS net profit attributable to ordinary shareholders was RMB 21.2 million (US$ 3.0 million) for the third quarter, signaling a successful transition to the "high-quality development" phase, focusing on profitability and marking a significant improvement in the company’s earning capabilities.Strategic Focus on Charging Services, Strengthening the Role as an Industry Connector
NaaS's strong profitability this quarter is closely tied to its strategic decision to focus on its charging services business, which is a platform business in nature.
As a leader in third-party electric vehicle (EV) charging services, NaaS does not directly operate charging stations. Instead, it leverages its robust connectivity, operational, and intelligent digital capabilities to act as an "industry connector." Positioned as a platform linking supply and demand in the EV charging industry, NaaS avoids the low-profit, high-capital-intensive energy solutions segment and emphasizes the distinct platform characteristics of its charging service business.
NaaS’s charging service business is supported by its strategic partnership with the Kuaidian APP, which serves as a traffic portal to provide interconnection services for various charging operators. The partnership expands NaaS’s user outreach while also improving EV charging stations’ utilization and operational efficiency, by drawing to them more customer traffic . For EV owners, the service enables quick searches for nearby charging stations, including real-time status updates, improving charging efficiency and optimizing the user experience.
NaaS’s platform-driven charging services integrate various industry participants, enhance ecosystem construction on both the supply and demand sides, improve industry efficiency, and align the charging sector with the rapid growth of China's EV industry.
This platform business requires substantial early-stage investment, including subsidies, to cultivate market habits and expand network coverage. With the rapidly evolving EV sector, characterized by technological innovation and shifting market dynamics, initial investments may be amplified. However, as the platform grows and user loyalty strengthens, the industry shifts from chaotic expansion to refined operations, with NaaS gradually realizing economies of scale and achieving profitability at scale.
According to the latest financial report, NaaS is actively aligning with industry development trends by optimizing its internal processes and improving efficiency, thereby enhancing profitability. Driven by the dual forces of market demand and user growth, NaaS is gradually entering a harvest phase.
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