In a recent announcement, NewLink revealed that its refined oil-related business has achieved overall profitability. Simultaneously, the company's new energy business, focusing on charging scenarios, has experienced remarkable growth and reached profitability on the order side.
The journey of NewLink
Established in 2016, NewLink initially focused on gas stations and charging stations, offering services such as energy digitalization, asset management, and supply chain management through Tuanyou and the Kuaidian digital network. The company has now entered the second phase of its entrepreneurial journey, boasting a strong network of 400 million vehicle owners.
As of September 30, 2023, NewLink has connected to 25,000 gas stations and over 767,000 chargers, representing a significant portion of China's energy market. NaaS Technology (NASDAQ:NAAS), a NewLink subsidiary and the first US-listed EV charging service company in China, is playing a pivotal role in this expansion.
Refined oil business success
NewLink's refined oil business has achieved profitability on the order side, signaling a successful revenue generation strategy. The company addresses pain points in the energy retail market, focusing on cost reduction and efficiency improvement throughout the supply chain.
In the upstream supply chain, Nengcheng Technology, one of NewLink's subsidiaries, provides digitalized supply chain solutions to gas stations, reducing transportation and warehousing costs. In the midstream, Zhongnenglian assists gas stations with brand upgrading, digital transformation, and standardized operations to improve operational efficiency. In the downstream consumer side, Tuanyou has millions of vehicle owners as its customer base. Nengqi Technology helps thousands of enterprises efficiently replenish energy, thereby boosting sales for oil stations.
With a positive monthly net profit expected by the end of 2023, NewLink is well-positioned in China's trillion-level energy retail market, showcasing the success of its refined oil business model.
Synergy between businesses
As China undergoes a transition with over 400 million motor vehicles, NewLink's businesses, including Tuanyou and Nengqi Technology, have accumulated millions of vehicle owner users. This user base provides a solid foundation for NaaS to capitalize on the fuel switching trend, evident in its Q3 2023 financial statement with a remarkable year-on-year revenue growth of 536%.
demonstrates a high overlap of 70% between its EV charging service users and
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Moreover, the value of NaaS's open platform will continue to grow. By connecting the long-tail charging piles through SaaS system and launching the NEF (NAAS Energy Fintech) system, NaaS can share its accumulated digital capabilities, including big data site selection and intelligent operation and maintenance. This online-to-offline connectivity and operational capability is exactly what the charging industry lacks.
Strategic initiatives and digitalization as the driving force
Starting from 2023, NewLink has demonstrated its in-depth service capabilities, adding flagship programs to its portfolio. Collaborations with Wenergy Group and successful bids for projects like the Anji Integrated PV-Storage-Charging-Swapping Project highlight the company's commitment to prioritize in-depth services and expand profitability.
In the era of electrification, NewLink, with its digital and intelligent platform, aims to become the digital infrastructure for the transportation energy industry. Founder and CEO Zhen Dai envisions the company as the driving force behind the efficient operations of the trillion-dollar transportation energy market.