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NIO Inc. Reports Unaudited Second Quarter 2021 Financial Results

August 11, 2021 5:30 PM

Quarterly Total Revenues reached RMB8,448.0 million (US$1,308.4 million)iQuarterly Deliveries of the ES8, the ES6 and the EC6 were 21,896 vehicles

SHANGHAI, China, Aug. 11, 2021 (GLOBE NEWSWIRE) -- NIO Inc. (“NIO” or the “Company”) (NYSE: NIO), a pioneer and a leading company in the premium smart electric vehicle market in China, today announced its unaudited financial results for the second quarter ended June 30, 2021.

Operating Highlights for the Second Quarter 2021

Key Operating Results
2021 Q22021 Q12020 Q42020 Q3
Deliveries21,89620,06017,35312,206
2020 Q22020 Q12019 Q42019 Q3
Deliveries10,3313,8388,2244,799

Financial Highlights for the Second Quarter of 2021

Key Financial Results(in RMB million, except for per ordinaryshare data and percentage)
2021 Q2 2021 Q1 2020 Q2 % Changeiv
QoQYoY
Vehicle Sales7,911.8 7,405.8 3,486.1 6.8%127.0%
Vehicle Margin20.3% 21.2% 9.7% -90bp1060bp
Total Revenues8,448.0 7,982.3 3,718.9 5.8%127.2%
Gross Profit1,573.9 1,554.8 313.1 1.2%402.7%
Gross Margin18.6% 19.5% 8.4% -90bp1020bp
Loss from Operations(763.3) (295.9) (1,160.0) 158.0%-34.2%
Adjusted Loss from Operations (non-GAAP)(511.9) (199.4) (1,114.7) 156.7%-54.1%
Net Loss(587.2) (451.0) (1,176.7) 30.2%-50.1%
Adjusted Net Loss (non-GAAP)(335.8) (354.6) (1,131.4) -5.3%-70.3%
Net Loss Attributable to Ordinary Shareholders(659.3) (4,875.0) (1,207.8) -86.5%-45.4%
Net Loss per Ordinary Share-Basic and Diluted(0.42) (3.14) (1.15) -86.6%-63.5%
Adjusted Net Loss per Ordinary Share-Basic and Diluted (non-GAAP)(0.21) (0.23) (1.08) -8.7%-80.6%

Recent Developments

Deliveries in July 2021

Renewal of Joint Manufacturing Arrangements

Extraordinary General Meeting

Appointment of Independent Director

CEO and CFO Comments

"We achieved a record-high quarterly delivery of 21,896 vehicles in the second quarter of 2021, followed by 7,931 vehicles in July, bringing the cumulative deliveries of NIO vehicles to 125,528 as of July 31, 2021," said William Bin Li, founder, chairman and chief executive officer of NIO. "While the global supply chain still faces uncertainties, we have been working closely with our partners to improve the overall supply chain production capacity. Encouraged by the growing user demand, we remain committed to further expanding our power network, increasing our service and sales coverage, and more importantly, accelerating our product and technology development.

"We aim to deliver three new products based on the NIO Technology Platform 2.0 in 2022, including ET7, a flagship premium smart electric sedan. As the EV adoption begins to reach a tipping point worldwide, we believe it is imperative to speed up the launch of new products to provide more premium smart EV offerings with superior holistic services to the growing user base in the global market."

"Driven by another record-high quarterly deliveries in the second quarter of 2021, we have achieved solid financial performance with vehicle margin and gross margin reaching 20.3% and 18.6% respectively," added Steven Wei Feng, NIO's chief financial officer. "As we expand our horizon to more markets, we will continue to make decisive investments in product and core technology development and sales and service network expansion while improving our overall organizational efficiency and capabilities to support the long-term vision of NIO."

Financial Results for the Second Quarter 2021

Revenues

Cost of Sales and Gross Margin

Operating Expenses

Loss from Operations

Share-based Compensation Expenses

Net Loss and Earnings Per Share

Balance Sheets

Business Outlook

For the third quarter of 2021, the Company expects:

This business outlook reflects the Company’s current and preliminary view on the business situation and market condition, which is subject to change.

Conference Call

The Company’s management will host an earnings conference call at 9:00 PM U.S. Eastern Time on August 11, 2021 (9:00 AM Beijing/Hong Kong Time on August 12, 2021).

A live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.nio.com/news-events/events.

For participants who wish to join the conference using dial-in numbers, please register in advance using the link provided below and dial in 10 minutes prior to the call. Direct Event passcode and unique registrant ID would be provided upon registering.

http://apac.directeventreg.com/registration/event/2143229

A replay of the conference call will be accessible by phone approximately two hours after the conclusion of the live call at the following numbers, until August 17, 2021 09:59 AM ET:

United States:+1-646-254-3697
International:+61-2-8199-0299
Hong Kong, China:+852-3051-2780
Mainland, China+86-400-602-2065
Conference ID:2143229

About NIO Inc.

NIO Inc. is a pioneer and a leading company in the premium smart electric vehicle market in China. Founded in November 2014, NIO’s mission is to shape a joyful lifestyle. NIO aims to build a community starting with smart electric vehicles to share joy and grow together with users. NIO designs, develops, jointly manufactures and sells smart premium electric vehicles, driving innovations in next-generation technologies in autonomous driving, digital technologies, electric powertrains and batteries. NIO differentiates itself through its continuous technological breakthroughs and innovations, such as its industry-leading battery swapping technologies, Battery as a Service, or BaaS, as well as its proprietary autonomous driving technologies and Autonomous Driving as a Service, or ADaaS. NIO launched the ES8, a seven-seater flagship premium smart electric SUV in December 2017, and began deliveries of the ES8 in June 2018 and its variant, the six-seater ES8, in March 2019. NIO launched the ES6, a five-seater high-performance premium smart electric SUV, in December 2018, and began deliveries of the ES6 in June 2019. NIO launched the EC6, a five-seater premium smart electric coupe SUV, in December 2019, and began deliveries of the EC6 in September 2020. NIO launched the ET7, a flagship premium smart electric sedan, in January 2021.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. NIO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about NIO’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: NIO’s strategies; NIO’s future business development, financial condition and results of operations; NIO’s ability to develop and manufacture a car of sufficient quality and appeal to customers on schedule and on a large scale; its ability to ensure and expand manufacturing capacities including establishing and maintaining partnerships with third parties; its ability to provide convenient and comprehensive power solutions to its customers; the viability, growth potential and prospects of the newly introduced BaaS and ADaaS; its ability to improve the technologies or develop alternative technologies in meeting evolving market demand and industry development; NIO’s ability to satisfy the mandated safety standards relating to motor vehicles; its ability to secure supply of raw materials or other components used in its vehicles; its ability to secure sufficient reservations and sales of the ES8, ES6, EC6 and ET7; its ability to control costs associated with its operations; its ability to build the NIO brand; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in NIO’s filings with the SEC. All information provided in this press release is as of the date of this press release, and NIO does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Non-GAAP Disclosure

The Company uses non-GAAP measures, such as adjusted cost of sales (non-GAAP), adjusted research and development expenses (non-GAAP), adjusted selling, general and administrative expenses (non-GAAP), adjusted loss from operations (non-GAAP), adjusted net loss (non-GAAP), adjusted net loss attributable to ordinary shareholders (non-GAAP), adjusted basic and diluted net loss per share (non-GAAP) and adjusted basic and diluted net loss per ADS (non-GAAP), in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

Exchange Rate

This announcement contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB6.4566 to US$1.00, the noon buying rate in effect on June 30, 2021 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

Statement Regarding Preliminary Unaudited Financial Information

The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information.

For more information, please visit: http://ir.nio.com.

Contact:

NIO Inc.Investor RelationsTel: +86-21-6908-2018Email: [email protected]

Source: NIONIO INC.

Unaudited Consolidated Balance Sheets

Amounts expressed in Renminbi (“RMB”), unless otherwise stated
(in thousands, except for share and per share data)

December 31, 2020 June 30, 2021 June 30, 2021 (US$)
ASSETS
Current assets:
Cash and cash equivalents38,425,541 17,394,414 2,694,052
Restricted cash78,010 1,472,105 228,000
Short-term investment3,950,747 29,457,851 4,562,440
Trade and notes receivable1,083,372 2,312,212 358,116
Amounts due from related parties169,288 504,500 78,137
Inventory1,081,553 2,186,916 338,710
Prepayments and other current assets1,418,306 1,355,012 209,865
Total current assets46,206,817 54,683,010 8,469,320
Non-current assets:
Long-term restricted cash41,547 41,196 6,380
Property, plant and equipment, net4,996,228 4,930,231 763,596
Intangible assets, net613 204 32
Land use rights, net203,968 201,545 31,215
Long-term investments300,121 399,959 61,946
Amounts due from related parties617 — —
Right-of-use assets - operating lease1,350,294 1,632,926 252,908
Other non-current assets1,541,724 3,630,669 562,319
Total non-current assets8,435,112 10,836,730 1,678,396
Total assets54,641,929 65,519,740 10,147,716
LIABILITIES
Current liabilities:
Short-term borrowings1,550,000 4,130,000 639,656
Trade and notes payable6,368,253 10,573,942 1,637,695
Amounts due to related parties344,603 432,161 66,933
Taxes payable181,658 144,472 22,376
Current portion of operating lease liabilities547,142 551,348 85,393
Current portion of long-term borrowings380,560 1,564,127 242,252
Accruals and other liabilities4,604,024 4,641,551 718,885
Total current liabilities13,976,240 22,037,601 3,413,190
Non-current liabilities:
Long-term borrowings5,938,279 9,791,620 1,516,529
Non-current operating lease liabilities1,015,261 1,207,915 187,082
Other non-current liabilities1,849,906 2,444,001 378,528
Total non-current liabilities8,803,446 13,443,536 2,082,139
Total liabilities22,779,686 35,481,137 5,495,329

NIO INC.

Unaudited Consolidated Balance Sheets

Amounts expressed in Renminbi (“RMB”), unless otherwise stated
(in thousands, except for share and per share data)

December 31, 2020June 30, 2021June 30, 2021 (US$)
MEZZANINE EQUITY
Redeemable non-controlling interests4,691,287 3,687,451 571,113
Total mezzanine equity4,691,287 3,687,451 571,113
SHAREHOLDERS’ EQUITY
Ordinary shares2,679 2,801 434
Treasury shares— (1,849,600) (286,467)
Additional paid in capital78,880,014 81,136,762 12,566,484
Accumulated other comprehensive loss(65,452) (254,308) (39,387)
Accumulated deficit(51,648,410) (52,686,483) (8,160,097)
Total NIO Inc. shareholders’ equity27,168,831 26,349,172 4,080,967
Non-controlling interests2,125 1,980 307
Total shareholders’ equity27,170,956 26,351,152 4,081,274
Total liabilities, mezzanine equity and shareholders’ equity54,641,929 65,519,740 10,147,716

NIO INC.

Unaudited Consolidated Statements of Comprehensive Loss

Amounts expressed in Renminbi (“RMB”), unless otherwise stated
(in thousands, except for share and per share data)

Three Months Ended
June 30, 2020 March 31, 2021 June 30, 2021 June 30, 2021 (US$)
Revenues:
Vehicle sales3,486,089 7,405,787 7,911,813 1,225,384
Other sales232,841 576,546 536,234 83,052
Total revenues3,718,930 7,982,333 8,448,047 1,308,436
Cost of sales:
Vehicle sales(3,148,621) (5,838,942) (6,308,001) (976,985)
Other sales(257,168) (588,585) (566,125) (87,682)
Total cost of sales(3,405,789) (6,427,527) (6,874,126) (1,064,667)
Gross profits313,141 1,554,806 1,573,921 243,769
Operating expenses:
Research and development(545,185) (686,548) (883,666) (136,862)
Selling, general and administrative(936,788) (1,197,248) (1,497,760) (231,973)
Other operating income, net8,829 33,066 44,182 6,843
Total operating expenses(1,473,144) (1,850,730) (2,337,244) (361,992)
Loss from operations(1,160,003) (295,924) (763,323) (118,223)
Interest income20,584 119,618 193,034 29,897
Interest expenses(112,917) (423,756) (60,527) (9,374)
Share of (losses)/profits of equity investees(4,408) 103,288 (3,450) (534)
Other income, net82,107 49,683 48,907 7,575
Loss before income tax expense(1,174,637) (447,091) (585,359) (90,659)
Income tax expense(2,017) (3,957) (1,811) (280)
Net loss(1,176,654) (451,048) (587,170) (90,939)
Accretion on redeemable non-controlling interests to redemption value(31,561) (4,423,996) (72,168) (11,177)
Net loss attributable to non-controlling interests368 84 61 9
Net loss attributable to ordinary shareholders of NIO Inc.(1,207,847) (4,874,960) (659,277) (102,107)
Net loss(1,176,654) (451,048) (587,170) (90,939)
Other comprehensive income/(loss)
Foreign currency translation adjustment, net of nil tax6,477 (74,529) (114,327) (17,707)
Total other comprehensive income/(loss)6,477 (74,529) (114,327) (17,707)
Total comprehensive loss(1,170,177) (525,577) (701,497) (108,646)
Accretion on redeemable non-controlling interests to redemption value(31,561) (4,423,996) (72,168) (11,177)
Net loss attributable to non-controlling interests368 84 61 9
Comprehensive loss attributable to ordinary shareholders of NIO Inc.(1,201,370) (4,949,489) (773,604) (119,814)
Weighted average number of ordinary shares used in computing net loss per share
Basic and diluted1,054,638,822 1,551,918,888 1,563,893,630 1,563,893,630
Net loss per share attributable to ordinary shareholders
Basic and diluted(1.15) (3.14) (0.42) (0.07)
Weighted average number of ADS used in computing net loss per share
Basic and diluted1,054,638,822 1,551,918,888 1,563,893,630 1,563,893,630
Net loss per ADS attributable to ordinary shareholders
Basic and diluted(1.15) (3.14) (0.42) (0.07)

NIO INC.

Unaudited Reconciliation of GAAP and Non-GAAP Results

Amounts expressed in Renminbi (“RMB”), unless otherwise stated
(in thousands, except for share and per share data)

Three Months Ended June 30, 2021
GAAPResult% ofTotalNon-GAAPAdjustment % ofTotalNon-GAAPResult% of Total
Revenues Revenues Revenues
Share-based compensation included in cost of sales and operating expenses is as follows:
Cost of sales(6,874,126) -81.4% 8,393 0.1% (6,865,733) -81.3%
Research and development expenses(883,666) -10.5% 82,772 1.0% (800,894) -9.5%
Selling, general and administrative expenses(1,497,760) -17.7% 160,215 1.9% (1,337,545) -15.8%
Total(9,255,552) -109.6% 251,380 3.0% (9,004,172) -106.6%
Loss from operations(763,323) -9.0% 251,380 3.0% (511,943) -6.0%
Net loss(587,170) -7.0% 251,380 3.0% (335,790) -4.0%
Accretion on redeemable non-controlling interests to redemption value(72,168) -0.9% 72,168 0.9% — 0.0%
Net loss attributable to ordinary shareholders of NIO Inc.(659,277) -7.8% 323,548 3.8% (335,729) -4.0%
Net loss per share attributable to ordinary shareholders, basic and diluted (RMB)(0.42) 0.21 (0.21)
Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)(0.42) 0.21 (0.21)
Net loss per ADS attributable to ordinary shareholders, basic and diluted (USD)(0.07) 0.04 (0.03)

Three Months Ended March 31, 2021
GAAPResult% of TotalNon-GAAPAdjustment % ofTotalNon-GAAPResult% of Total
Revenues Revenues Revenues
Share-based compensation included in cost of sales and operating expenses is as follows:
Cost of sales(6,427,527) -80.5% 3,651 0.0% (6,423,876) -80.5%
Research and development expenses(686,548) -8.6% 36,515 0.5% (650,033) -8.1%
Selling, general and administrative expenses(1,197,248) -15.0% 56,314 0.7% (1,140,934) -14.3%
Total(8,311,323) -104.1% 96,480 1.2% (8,214,843) -102.9%
Loss from operations(295,924) -3.7% 96,480 1.2% (199,444) -2.5%
Net loss(451,048) -5.7% 96,480 1.2% (354,568) -4.5%
Accretion on redeemable non-controlling interests to redemption value(4,423,996) -55.4% 4,423,996 55.4% — 0.0%
Net loss attributable to ordinary shareholders of NIO Inc.(4,874,960) -61.1% 4,520,476 56.6% (354,484) -4.5%
Net loss per share attributable to ordinary shareholders, basic and diluted (RMB)(3.14) 2.91 (0.23)
Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)(3.14) 2.91 (0.23)

Three Months Ended June 30, 2020
GAAPResult% of TotalNon-GAAPAdjustment % ofTotalNon-GAAPResult% of Total
Revenues Revenues Revenues
Share-based compensation included in cost of sales and operating expenses is as follows:
Cost of sales(3,405,789) -91.6% 1,296 0.0% (3,404,493) -91.6%
Research and development expenses(545,185) -14.7% 11,659 0.3% (533,526) -14.4%
Selling, general and administrative expenses(936,788) -25.2% 32,333 0.9% (904,455) -24.3%
Total(4,887,762) -131.5% 45,288 1.2% (4,842,474) -130.3%
Loss from operations(1,160,003) -31.2% 45,288 1.2% (1,114,715) -30.0%
Net loss(1,176,654) -31.6% 45,288 1.2% (1,131,366) -30.4%
Accretion on redeemable non-controlling interests to redemption value(31,561) -0.8% 31,561 0.8% — 0.0%
Net loss attributable to ordinary shareholders of NIO Inc.(1,207,847) -32.5% 76,849 2.1% (1,130,998) -30.4%
Net loss per share attributable to ordinary shareholders, basic and diluted (RMB)(1.15) 0.07 (1.08)
Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)(1.15) 0.07 (1.08)

_______________

i All translations from RMB to USD for the second quarter of 2021 were made at the rate of RMB6.4566 to US$1.00, the noon buying rate in effect on June 30, 2021 in the H.10 statistical release of the Federal Reserve Board.

ii Vehicle margin is the margin of new vehicle sales, which is calculated based on revenues and cost of sales derived from new vehicle sales only.

iii Each ADS represents one ordinary share.

iv Except for gross margin and vehicle margin, where absolute changes instead of percentage changes are calculated.

Source: NIO Inc.

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