1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Valuation
Discussion
Symbol
NA
Event Date
2022-07-12
Sector
Information Technology
Subsector
Semiconductors & Semiconductor Equipment
Offer Range
$11.50
Shares Offered
1.77M
$286.6M
Implied Upside vs Midpoint
Description
Our mission is to provide ubiquitous computing power to the Metaverse computing network with our fabless logic-memory integrated circuits. We are a leading fabless integrated circuit, or IC, design company and product solution provider in China. We are committed to the development of high throughput computing, or HTC, chips, high performance computing, or HPC, chips, distributed computing and storage solutions, smart network interface cards, or NICs, vision computing chips and distributed rendering. We have built a comprehensive flow processing unit, or FPU, architecture which offers solution that integrates the features of both HTC and HPC. Moreover, our Cuckoo series are one of the first near-memory HTC chips available in the market with a maximum bandwidth of approximately 2.27 Tbps, as well as one of the first movers of ASIC-based Grin mining market, according to the F&S report. In June 2021, we established IPOLLO PTE. LTD., our indirect wholly-owned subsidiary in Singapore, to facilitate our business expansion in the overseas IC markets. The fabless model of semiconductor production has become increasingly popular as it allows companies to focus on IC design and avoid significant resource investments by sharing the existing manufacturing facilities of a third party. The market size of the global fabless IC design market, in terms of the sales revenue, increased from US$101.5 billion in 2017 to US$169.0 billion in 2021 at a CAGR of 13.6%, according to the F&S report. Due to the emergence of cutting-edge technologies, such as artificial intelligence, Internet-of-things and blockchain, the market size of the global fabless IC design market is expected to reach US$343.3 billion in 2026 at a CAGR of 15.2% between 2021 and 2026, according to the same source. Moreover, China has taken a large share of the global fabless IC design market in recent years and experienced a steady growth in revenue due to the development of design and manufacturing technology and government support. According to the F&S report, the market size of China’s fabless IC design market, in terms of the sales revenue of ICs, increased from RMB72.6 billion in 2017 to RMB181.3 billion in 2021 at a CAGR of 25.7% and is expected to reach RMB468.6 billion in 2026 at a CAGR of 20.9% between 2021 and 2026, according to the same source. We have developed significant advantages in our business and technological capabilities, including the following: • We released our first generation of the Cuckoo series, Cuckoo 1.0, in the second quarter of 2020, which is one of the first near-memory HTC chips available in the market with a maximum bandwidth of approximately 2.27 Tbps, as well as one of the first movers in the ASIC-based Grin mining market, according to the F&S report. • We completed the tape-out for Cuckoo 2.0 and launched the product in the fourth quarter of 2021. We are in the design process of Cuckoo 3.0, which is expected to be completed in 2023. • We have completed the design of Darkbird 1.0 and have begun the delivery of Darkbird 1.0 in the first quarter of 2022. We are in the process of designing Darkbird 2.0. • Our proprietary HPC chips, Darkbird, embedded in our Bitcoin mining machine, iPollo, can achieve high computing power with reduced size and increased power efficiency. • In the fourth quarter of 2021, we launched our Darksteel series, which can be applied to both industrial and commercial sectors by offering distributed computing and data storage solutions. • We have successfully designed our 40nm, 22nm and n+1 ASIC chips and our 38nm memory chip. • As of December 31, 2021, we had registered six software copyrights, four IC layout-design rights and five patents in China, and applied for registration of 24 patents in China. In the four months ended April 30, 2022, we recorded a revenue of RMB175.6 million (US$27.5 million). As of April 30, 2022, we had total prepayments of RMB833.2 million (US$130.7 million) for pre-sale of our products. Such financial information is prepared by our management and is the responsibility of our management. Our independent registered public accounting firm, MaloneBailey, LLP, has not performed any audit or review of such financial information in accordance with any generally accepted auditing or review standards, or performed any other procedures with respect to such financial information. --- Our principal executive office is located at 30th Floor, Dikaiyinzuo, No. 29, East Jiefang Road, Hangzhou, Zhejiang, People’s Republic of China. Our telephone number at this address is (86) 0571-8665 6957. Our registered office in the Cayman Islands is located at PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands. Our corporate website is www.nano.cn. Our agent for service of process in the United States is Cogency Global Inc. located at 122 East 42nd Street, 18th Floor, New York, NY 10168.
Nano Labs Ltd annual income statement and balance sheet, FY 2022 to FY 2025, as reported in SEC filings (CNY).
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Revenue | CNY 983M | CNY 78.3M | CNY 40.6M | CNY 27.0M |
| Gross profit | CNY 230M | (CNY 103M) | CNY 11.6M | (CNY 39.8M) |
| Operating income | CNY 20.7M | (CNY 261M) | (CNY 114M) | CNY 71.4M |
| Net income | CNY 31.1M | (CNY 253M) | (CNY 113M) | CNY 135M |
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Total assets | CNY 367M | CNY 350M | CNY 616M | CNY 1.1B |
| Total liabilities | CNY 203M | CNY 367M | CNY 383M | CNY 379M |
| Total equity | CNY 164M | (CNY 16.3M) | CNY 233M | CNY 741M |
| Cash & equivalents | CNY 87.8M | CNY 48.2M | CNY 32.4M | CNY 8.5M |