Nano Labs Ltd (NA) (H1 2026) Earnings Call Highlights: Strategic AI-Web3 Pivot Amidst Widening …

This article first appeared on GuruFocus.

• Net Revenue: RMB2.8 million (USD0.4 million) for 1H 2026, down from RMB8.3 million in 1H 2025.

• Gross Loss: RMB5.8 million (USD0.9 million) for 1H 2026, compared to RMB10.7 million gross loss in 1H 2025.

• Cost of Revenue: RMB8.6 million (USD1.3 million) for 1H 2026, down from RMB19 million in 1H 2025.

• Total Operating Expenses: RMB285.8 million (USD42 million) for 1H 2026, versus total operating income of RMB21.3 million in 1H 2025.

• Selling and Marketing Expenses: RMB3.1 million (USD0.4 million) for 1H 2026, up 17% from RMB2.6 million in 1H 2025.

• General and Administrative Expenses: RMB27.9 million (USD4.1 million) for 1H 2026, up 29.5% from RMB21.5 million in 1H 2025.

• Research and Development Expenses: RMB4.4 million (USD0.6 million) for 1H 2026, up 39.8% from RMB3.2 million in 1H 2025.

• Change in Fair Value of Cryptocurrencies: Loss of RMB250.5 million (USD36.8 million) for 1H 2026, versus a gain of RMB48.6 million in 1H 2025.

• Loss from Operations: RMB291.7 million (USD42.8 million) for 1H 2026, versus a profit of RMB10.6 million in 1H 2025.

• Net Loss: RMB316.7 million (USD46.5 million) for 1H 2026, compared to RMB11.8 million net loss in 1H 2025.

• Basic and Diluted Loss per Share: RMB13.65 (USD2) for 1H 2026, versus RMB0.43 loss per share in 1H 2025.

• Cash and Cash Equivalents: RMB9.0 million (USD1.3 million) as of June 30, 2026, compared to RMB8.5 million as of December 31, 2025.

Release Date: August 28, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Launched the next-generation iPollo ClawPC A1 Mini, marking a strategic entry into AI-Web3 convergence and expanding product portfolio.

• Adopted a disciplined digital asset reserve strategy, holding 30,000 BNB as a core strategic asset to strengthen the balance sheet and support ecosystem collaboration.

• Continued executing a share repurchase program of up to USD25 million, with USD3.2 million already completed, demonstrating management confidence in long-term value.

• Reduced cost of revenue by 55% year-over-year, reflecting improved cost management despite lower sales volume.

• Increased research and development expenses by 39.8% to support system development and innovation in AI and Web3 technologies.

Negative Points

• Net revenue declined significantly to RMB2.8 million from RMB8.3 million year-over-year, driven by a drop in iPollo V-Series sales volume.

• Recorded a gross loss of RMB5.8 million, though improved from a loss of RMB10.7 million in the prior year.

• Total operating expenses surged to RMB285.8 million from an operating income of RMB21.3 million, primarily due to a RMB250.5 million loss from the change in fair value of cryptocurrencies.

• Net loss widened to RMB316.7 million from RMB11.8 million, with basic and diluted loss per share increasing to RMB13.65 from RMB0.43.

• General and administrative expenses rose 29.5% due to higher professional fees and real estate-related taxes, adding to cost pressures.

Q & A Highlights

Q: Why has the company chosen to focus on AI-related business this year?A: CEO Jianping Kong explained that the expansion into AI is the result of a long-term strategic evaluation rather than a short-term market trend. The company has built solid capabilities in blockchain infrastructure, hardware development, and ecosystem construction. As AI and Web3 converge, they see significant opportunities to leverage these strengths. The launch of the iPollo ClawPC A1 Mini is the first step, designed for practical applications across entertainment, content creation, and office productivity, with plans to expand both hardware and software components of the open cloud ecosystem.

Q: What are the company’s future plans for its digital assets reserves?A: CEO Jianping Kong stated that digital assets have become an integral part of the long-term corporate strategy, with BNB designated as the core strategic reserve asset based on its ecosystem potential and long-term value. The company intends to manage the reserve portfolio prudently by evaluating market conditions, liquidity needs, and strategic priorities before making additional investments, while optimizing overall digital asset allocation to enhance portfolio resilience and support future business development.

Q: What is the company’s long-term business development strategy?A: CEO Jianping Kong outlined a strategy built on two complementary pillars: first, maintaining a disciplined digital asset reserve strategy with BNB as a core strategic asset to support financial stability and ecosystem development; second, driving sustainable business growth through the integration of AI and Web3 technologies, leveraging the iPollo ClawPC A1 Mini as a starting point. The company plans to expand the open cloud ecosystem with additional products, strengthen its software platform, and explore new commercial applications and business models.

Q: What are the company’s expectations for its operating performance in the second half of 2026?A: CFO Bing Chen stated that the company will remain focused on executing strategic priorities, including advancing digital asset initiatives and expanding the next-generation AI product ecosystem. He provided an update on capital management, noting that as of June 30, 2026, the company had repurchased an aggregate of 1,117,401 shares under its repurchase program launched in December 2025. The company intends to continue executing the program according to its terms and prevailing market conditions, reflecting management’s confidence in long-term prospects.

Q: What were the key financial results for the first half of 2026?A: CFO Bing Chen reported net revenue of RMB2.8 million (USD0.4 million), down from RMB8.3 million in the same period last year, primarily due to a drop in sales volume of iPollo V-Series. The company recorded a gross loss of RMB5.8 million (USD0.9 million), and total operating expenses increased to RMB285.8 million (USD42 million). The change in fair value of cryptocurrencies resulted in a loss of RMB250.5 million (USD36.8 million) due to decreased BNB prices. Net loss was RMB316.7 million (USD46.5 million), compared to RMB11.8 million in the same period of 2025.

Q: What caused the significant increase in operating expenses during the first half of 2026?A: CFO Bing Chen detailed that selling and marketing expenses increased by 17% to RMB3.1 million due to sales and marketing expansion. General and administrative expenses increased by 29.5% to RMB27.9 million, primarily due to increases in professional fees and real estate-related taxes. Research and development expenses increased by 39.8% to RMB4.4 million, mainly due to increased service fees for system development.

Q: How is the company’s share repurchase program progressing?A: CEO Jianping Kong noted that the company continues to advance its share repurchase program of up to USD25 million, originally announced in October 2025. As of August 2026, the company had completed repurchases of Class A ordinary shares for a total consideration of USD3.2 million, and will continue to advance the program in a steady and disciplined manner over the long term to enhance shareholder value.

Q: What is the company’s cash position as of June 30, 2026?A: CFO Bing Chen reported that as of June 30, 2026, the company had cash and cash equivalents of RMB9.0 million (USD1.3 million), compared to RMB8.5 million as of December 31, 2025. He expressed confidence in the company’s business strategy and ability to execute, stating they will continue to leverage technology strengths to capture development opportunities and drive long-term growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.