NaaS Technology Inc. (NASDAQ:NAAS), a leading EV charging service provider in China, has announced a change in its independent registered public accounting firm. The company's board of directors and the audit committee have approved the dismissal of Centurion ZD CPA & Co. and the appointment of Enrome LLP as its new auditor.
The transition, which took effect on Wednesday, was made to enhance audit quality and efficiency. The previous auditor, Centurion, had not issued any adverse opinion or disclaimer of opinion on the company's financial statements for the year ended December 31, 2023. Furthermore, there were no disagreements or reportable events between NaaS Technology and Centurion during the last audit and the subsequent interim period leading up to their dismissal on June 24, 2024.
Enrome LLP will audit the consolidated financial statements for the fiscal year ending December 31, 2024. The company confirmed that there had been no consultations with Enrome on accounting principles or auditing matters prior to their appointment.
NaaS Technology is coordinating efforts with both Centurion and Enrome to ensure a smooth transition. This change comes as the company continues to grow and adapt to the evolving needs of its audit processes.
In other recent news, NaaS Technology Inc., an electric vehicle charging service provider, announced a significant change in its American Depositary Shares (ADS) ratio. The updated ADS ratio, equivalent to a one-for-twenty reverse ADS split, is set to take effect at the start of business on June 13, 2024, according to JPMorgan Chase (NYSE:JPM) Bank, N.A., the depositary bank. Shareholders will need to exchange every 20 existing ADSs for one new ADS, with trading continuing without interruption on the Nasdaq Stock Market.
In addition to the ADS ratio change, NaaS Technology Inc. reported a robust 156% increase in revenue year-over-year for the first quarter of 2024, reaching RMB96.24 million. This growth is attributed to the company's dual-engine model in the charging service industry. The company has also expanded its gross margin to 25%, marking an 8.4 percentage point increase, and is aiming to achieve positive EBIT by year-end.
Furthermore, NaaS Technology Inc. has filed over 250 patent applications and joined the Open Invention Network (LON:NETW), reinforcing its commitment to innovation and growth in the rapidly evolving electric vehicle charging service sector. These recent developments provide an insight into the company's strategic moves to strengthen its position and performance in the market.
InvestingPro Insights
As NaaS Technology Inc. (NASDAQ:NAAS) navigates through its transition to a new auditor, investors may be interested in the latest financial metrics and analyst insights from InvestingPro. The company, with a market capitalization of $37.26 million, has shown a remarkable revenue growth rate of 232.02% over the last twelve months as of Q1 2024. This signals a significant expansion in its business activities, aligning with the company's efforts to adapt and grow in the dynamic EV charging service market.
Despite the positive revenue growth, NaaS Technology is faced with substantial challenges. An InvestingPro Tip suggests that the company operates with a significant debt burden, which could pose difficulties in making interest payments on its debt. Additionally, the company's stock has experienced a sharp decline, losing 67.6% of its value over the last month and falling to just 1.66% of its 52-week high. This volatility is reflected in the stock's price performance, which has been poor over multiple time frames, including a 97.16% drop over the past year.
Investors considering NaaS Technology Inc. should note that the company is not currently profitable, and analysts do not anticipate it will be profitable this year. The stock's negative P/E ratio of -0.34 further underscores the earnings challenges faced by the company. For those looking to delve deeper into NaaS Technology's financial health and future prospects, InvestingPro offers additional insights and tips. Utilize the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover the full array of InvestingPro Tips to inform your investment strategy.
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