NaaS Technology Inc. Annual Report: A Guide for Investors

I’ve put together this guide to help you understand how NaaS Technology performed this year. My goal is to break down complex filings into plain English so you can decide if this company fits your investment strategy.

1. What does this company do?

NaaS Technology acts as a digital bridge in the Chinese EV market. They run a platform connecting EV drivers to over 900,000 charging piles.

They earn money through online charging commissions, hardware sales, and energy storage solutions. Recently, they shifted their strategy. They are moving away from owning charging stations—which is expensive and offers low profit—to focus on high-profit software and digital marketing services for station operators.

2. Important: How your investment is structured

When you buy NaaS stock, you aren't buying a direct piece of the Chinese business. You are buying shares in a Cayman Islands holding company.

This company uses complex contracts to control its Chinese operations because China restricts foreign ownership of these services. If the Chinese government bans this structure or changes regulations, your investment could lose all its value. You hold no direct legal ownership of the physical assets or licenses in China.

3. Financial performance & health

NaaS is still in a "growth phase," meaning they are losing significant money while trying to scale.

• The Losses: The company reported losses of RMB 1.3 billion in 2023, RMB 914 million in 2024, and RMB 450 million in 2025. While losses are shrinking, the company still spends more cash than it earns.
• Revenue: For 2024, revenue was approximately RMB 300 million. This reflects the volatility of moving away from hardware sales.
• Cash Flow: The company pays no dividends. Because of strict Chinese capital controls, moving money out of China to pay shareholders is currently impractical.
• Funding: They rely on selling new shares and debt to fund operations. They hold about RMB 200 million in cash, which they admit is not enough to last the next 12 months without raising more money.

4. Key risks: What could go wrong?

• Nasdaq Compliance: NaaS has received notices for failing to keep its share price above $1.00. If they don't fix this, they face delisting, which would force the stock onto less accessible markets.
• Dependency: NaaS relies heavily on its parent company, NewLink. Since NewLink controls the Kuaidian app, NaaS lacks independent control over its main customer source.
• Government Oversight: The Chinese government can intervene at any time. Additionally, U.S. regulators could delist the stock if they cannot audit the company’s books in China.
• Share Dilution: To raise cash, the company frequently issues new shares. This means more shares are issued, reducing your ownership percentage. The share count has grown by over 20% in the last 18 months.

5. Future outlook

NaaS is betting on a "platform" model, aiming for profit by 2026 through software fees and advertising. They want to avoid the high costs of running physical stations. However, they face intense competition from major players like State Grid. Their future depends entirely on the growth of Chinese EV adoption and their ability to stay ahead in energy software.

Final Thought for Investors: While the company is narrowing its losses, the structural and regulatory risks remain very high. Before investing, consider whether you are comfortable with the risks of a variable interest entity (VIE) structure and the company's current need to raise additional capital to sustain operations.