NaaS Technology (NAAS:NASDAQ), the first US-listed EV charging service company in China, announced on March 13 that it has reached a public offering of approximately USD 6 million with subsidiaries of J.P.Morgan Asset Management, Highbridge Tactical Credit Master Fund, L.P. and Highbridge Tactical Credit Institutional Fund, Ltd.. If involved the equal shares of ADSs in the future, the deal could be doubled to up to USD 12 million.
The subject of this deal, Highbridge Tactical Credit Master Fund, L.P. and Highbridge Tactical Credit Institutional Fund, Ltd., are subsidiaries of J.P.Morgan Asset Management since 2004. With over a century of investment experience, J.P.Morgan is trusted by worldwide clients to manage USD 2.4 trillion in assets. Highbridge Funds also enjoys nearly USD 4 billion in assets under management, data shown from its financial report dated Dec. 31, 2022. The deal from this magnate demonstrates not only an optimistic view of the potential in China's new energy vehicles and charging ecosystem, but also a solid recognition of NaaS as a key player in the broad landscape.
According to the China Association of Automobile Manufacturers (CAAM), as of the end of 2023, the total number of China's EVs reached 20.41 million, accounting for more than half of the global total. The charging market and targets, as a result, have attracted the attention from internationally renowned investors.
In 2023, NaaS has also attracted the attention and continuous investment from multiple renowned investment institutions, including ELEC, an ETF managed by Envestnet, CCSO, an actively-managed climate change solutions ETF, and Invesco WilderHill Clean Energy ETF (PBW) under Invesco.
NaaS has achieved rapid growth in its charging service business by expanding its user base and increasing the coverage of charging stations, according to the latest disclosed financial reports. In January 2024, it achieved a five-month profitability growth on the transaction side, with further development in February.
Data shows that NaaS has expected the charging volume in 2023 to increase by 80% compared with that in the previous year, reaching 5 billion kWh, far exceeding the year-on-year growth rate of China's total EVs of 55.8% in 2023. This is equivalent to 3.3 times the public charging volume in the United States in 2023 and 60% of the public charging volume in Europe.
Previously, it is estimated that NaaS' revenue for the full year of 2023 would be in the range of CNY 310 million (USD 44 million) to CNY 330 million (USD 46 million), a year-over-year growth of 234% to 256% respectively. NaaS' parent company, NewLink, announced that its refined oil business has enabled overall profitability in February 2024.