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NIO Inc. Reports Unaudited Third Quarter 2021 Financial Results

November 9, 2021 4:30 PM

Quarterly Total Revenues reached RMB9,805.3 million (US$1,521.8 million)iQuarterly Deliveries of the ES8, the ES6 and the EC6 were 24,439 vehicles

SHANGHAI, China, Nov. 09, 2021 (GLOBE NEWSWIRE) -- NIO Inc. (“NIO” or the “Company”) (NYSE: NIO), a pioneer and a leading company in the premium smart electric vehicle market, today announced its unaudited financial results for the third quarter ended September 30, 2021.

Operating Highlights for the Third Quarter 2021

Key Operating Results
2021 Q32021 Q22021 Q12020 Q4
Deliveries24,43921,89620,06017,353
2020 Q32020 Q22020 Q12019 Q4
Deliveries12,20610,3313,8388,224

Financial Highlights for the Third Quarter 2021

Key Financial Results(in RMB million, except for per ordinary share data and percentage)
2021 Q3 2021 Q2 2020 Q3 % Changeiv
QoQYoY
Vehicle Sales 8,636.8 7,911.8 4,266.8 9.2% 102.4%
Vehicle Margin 18.0% 20.3% 14.5% -230bp 350bp
Total Revenues 9,805.3 8,448.0 4,526.0 16.1% 116.6%
Gross Profit 1,993.2 1,573.9 585.8 26.6% 240.3%
Gross Margin 20.3% 18.6% 12.9% 170bp 740bp
Loss from Operations (991.9) (763.3) (946.0) 29.9% 4.9%
Adjusted Loss from Operations (non-GAAP)(726.3) (511.9) (896.7) 41.9% -19.0%
Net Loss (835.3) (587.2) (1,047.0) 42.3% -20.2%
Adjusted Net Loss (non-GAAP)(569.7) (335.8) (997.8) 69.7% -42.9%
Net Loss Attributable to Ordinary Shareholders(2,858.9) (659.3) (1,187.9) 333.6% 140.7%
Net Loss per Ordinary Share-Basic and Diluted(1.82) (0.42) (0.98) 333.3% 85.7%
Adjusted Net Loss per Ordinary Share-Basic and Diluted (non-GAAP)(0.36) (0.21) (0.82) 71.4% -56.1%

Recent Developments

Deliveries in October 2021

Completion of Increase of Controlling Equity Interests in NIO China

At-The-Market Offering

CEO and CFO Comments

“We achieved another all-time high quarterly delivery of 24,439 for the third quarter of 2021, representing a solid growth of 100.2% year-over-year. Our demand continues to be strong and our new orders reached a new record high in October,” said William Bin Li, founder, chairman and chief executive officer of NIO. “Despite the continued supply chain volatilities, our teams and partners are working closely together to secure the supply and production for the fourth quarter of 2021. Meanwhile, we are fully dedicated to accelerating our products and technologies development and bringing the three new products based on NIO Technology Platform 2.0 to users in 2022 to lead the smart EV transformation and adoption,” concluded Mr. Li.

“We achieved new heights with our third quarter delivery while upholding a healthy financial performance with a 18.0% vehicle margin and a 20.3% gross margin, including the sales of regulatory credits,” added Steven Wei Feng, NIO's chief financial officer. “As we broaden our user base and enter global new markets, we are determined to further expand our sales and service network and expedite the swapping and charging infrastructure deployment to better reach and serve more users worldwide.”

Financial Results for the Third 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 fourth 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 8:00 PM U.S. Eastern Time on November 9, 2021 (9:00 AM Beijing/Hong Kong Time on November 10, 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/1595019

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 November 18, 2021 07:59 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:1595019

About NIO Inc.

NIO Inc. is a pioneer and a leading company in the premium smart electric vehicle market. 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 RMB6.4434 to US$1.00, the noon buying rate in effect on September 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.

Contacts:

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 September 30, 2021 September 30, 2021 (US$)
ASSETS
Current assets:
Cash and cash equivalents38,425,541 21,594,871 3,351,471
Restricted cash78,010 3,655,717 567,358
Short-term investment3,950,747 21,706,448 3,368,788
Trade and notes receivable1,083,372 3,277,911 508,724
Amounts due from related parties169,288 1,048,656 162,749
Inventory1,081,553 1,703,005 264,302
Prepayments and other current assets1,418,306 1,328,823 206,230
Total current assets46,206,817 54,315,431 8,429,622
Non-current assets:
Long-term restricted cash41,547 44,385 6,888
Property, plant and equipment, net4,996,228 6,032,503 936,230
Intangible assets, net613 3 —
Land use rights, net203,968 200,333 31,091
Long-term investments300,121 1,307,975 202,995
Amounts due from related parties617 — —
Right-of-use assets - operating lease1,350,294 2,348,642 364,504
Other non-current assets1,541,724 4,761,588 738,987
Total non-current assets8,435,112 14,695,429 2,280,695
Total assets54,641,929 69,010,860 10,710,317
LIABILITIES
Current liabilities:
Short-term borrowings1,550,000 5,310,000 824,099
Trade and notes payable6,368,253 10,798,315 1,675,872
Amounts due to related parties344,603 810,104 125,726
Taxes payable181,658 184,766 28,675
Current portion of operating lease liabilities547,142 646,887 100,395
Current portion of long-term borrowings380,560 1,562,777 242,539
Accruals and other liabilities4,604,024 7,290,806 1,131,516
Total current liabilities13,976,240 26,603,655 4,128,822
Non-current liabilities:
Long-term borrowings5,938,279 9,826,612 1,525,066
Non-current operating lease liabilities1,015,261 1,792,738 278,229
Other non-current liabilities1,849,906 3,055,570 474,217
Total non-current liabilities8,803,446 14,674,920 2,277,512
Total liabilities22,779,686 41,278,575 6,406,334

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, 2020 September 30, 2021 September 30, 2021 (US$)
MEZZANINE EQUITY
Redeemable non-controlling interests4,691,287 3,210,985 498,337
Total mezzanine equity4,691,287 3,210,985 498,337
SHAREHOLDERS’ EQUITY
Ordinary shares2,679 2,808 436
Treasury shares— (1,849,600) (287,053)
Additional paid in capital78,880,014 80,022,293 12,419,265
Accumulated other comprehensive loss(65,452) (234,396) (36,378)
Accumulated deficit(51,648,410) (53,521,799) (8,306,453)
Total NIO Inc. shareholders’ equity27,168,831 24,419,306 3,789,817
Non-controlling interests2,125 101,994 15,829
Total shareholders’ equity27,170,956 24,521,300 3,805,646
Total liabilities, mezzanine equity and shareholders’ equity54,641,929 69,010,860 10,710,317

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
September 30, 2020 June 30, 2021 September 30, 2021 September 30, 2021 (US$)
Revenues:
Vehicle sales 4,266,788 7,911,813 8,636,765 1,340,405
Other sales 259,172 536,234 1,168,536 181,354
Total revenues 4,525,960 8,448,047 9,805,301 1,521,759
Cost of sales:
Vehicle sales (3,649,069) (6,308,001) (7,078,180) (1,098,516)
Other sales (291,079) (566,125) (733,959) (113,909)
Total cost of sales (3,940,148) (6,874,126) (7,812,139) (1,212,425)
Gross profit 585,812 1,573,921 1,993,162 309,334
Operating expenses:
Research and development (590,783) (883,666) (1,193,122) (185,170)
Selling, general and administrative (940,331) (1,497,760) (1,824,875) (283,216)
Other operating (loss)/income, net (686) 44,182 32,910 5,108
Total operating expenses (1,531,800) (2,337,244) (2,985,087) (463,278)
Loss from operations (945,988) (763,323) (991,925) (153,944)
Interest income 51,652 193,034 240,120 37,266
Interest expenses (108,761) (60,527) (77,190) (11,980)
Share of losses of equity investees (13,638) (3,450) (35,631) (5,530)
Other (loss)/income, net (29,049) 48,907 32,574 5,055
Loss before income tax expense(1,045,784) (585,359) (832,052) (129,133)
Income tax expense (1,213) (1,811) (3,250) (504)
Net loss (1,046,997) (587,170) (835,302) (129,637)
Accretion on redeemable non-controlling interests to redemption value (142,742) (72,168) (2,023,534) (314,048)
Net loss/(profit) attributable to non-controlling interests 1,802 61 (14) (2)
Net loss attributable to ordinary shareholders of NIO Inc. (1,187,937) (659,277) (2,858,850) (443,687)
Net loss (1,046,997) (587,170) (835,302) (129,637)
Other comprehensive income/(loss)
Foreign currency translation adjustment, net of nil tax 207,985 (114,327) 19,912 3,090
Total other comprehensive income/(loss) 207,985 (114,327) 19,912 3,090
Total comprehensive loss (839,012) (701,497) (815,390) (126,547)

Accretion on redeemable non-controlling interests to redemption value(142,742) (72,168) (2,023.534) (314,048)
Net loss/(profit) attributable to non-controlling interests1,802 61 (14) (2)
Comprehensive loss attributable to ordinary shareholders of NIO Inc.(979,952) (773,604) (2,838,938) (440,597)

Weighted average number of ordinary shares used in computing net loss per share
Basic and diluted 1,210,613,409 1,563,893,630 1,567,807,244 1,567,807,244
Net loss per share attributable to ordinary shareholders
Basic and diluted (0.98) (0.42)(1.82) (0.28)
Weighted average number of ADS used in computing net loss per share
Basic and diluted 1,210,613,409 1,563,893,630 1,567,807,244 1,567,807,244
Net loss per ADS attributable to ordinary shareholders
Basic and diluted (0.98) (0.42)(1.82) (0.28)

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 September 30, 2021
GAAPResult % of Total Non-GAAPAdjustment % ofTotal Non-GAAPResult % of Total
Revenues Revenues Revenues
Share-based compensation included in cost of sales and operating expenses is as follows:
Cost of sales(7,812,139) -79.7% 10,021 0.1% (7,802,118) -79.6%
Research and development expenses(1,193,122) -12.2% 98,170 1.0% (1,094,952) -11.2%
Selling, general and administrative expenses(1,824,875) -18.6% 157,400 1.6% (1,667,475) -17.0%
Total(10,830,136) -110.5% 265,591 2.7% (10,564,545) -107.8%
Loss from operations(991,925) -10.1% 265,591 2.7% (726,334) -7.4%
Net loss(835,302) -8.5% 265,591 2.7% (569,711) -5.8%
Accretion on redeemable non-controlling interests to redemption value(2,023,534) -20.6% 2,023,534 20.6% — 0.0%
Net loss attributable to ordinary shareholders of NIO Inc.(2,858,850) -29.2% 2,289,125 23.4% (569,725) -5.8%
Net loss per share attributable to ordinary shareholders, basic and diluted (RMB)(1.82) 1.46 (0.36)
Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)(1.82) 1.46 (0.36)
Net loss per ADS attributable to ordinary shareholders, basic and diluted (USD)(0.28) 0.22 (0.06)

Three Months Ended June 30, 2021
GAAPResult % of Total Non-GAAPAdjustment % ofTotal Non-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)

Three Months Ended September 30, 2020
GAAPResult % of Total Non-GAAPAdjustment % of Total Non-GAAPResult % of Total
Revenues Revenues Revenues
Share-based compensation included in cost of sales and operating expenses is as follows:
Cost of sales(3,940,148) -87.1% 1,371 0.0% (3,938,777) -87.1%
Research and development expenses(590,783) -13.1% 12,996 0.3% (577,787) -12.8%
Selling, general and administrative expenses(940,331) -20.8% 34,872 0.8% (905,459) -20.0%
Total(5,471,262) -121.0% 49,239 1.1% (5,422,023) -119.9%
Loss from operations(945,988) -20.9% 49,239 1.1% (896,749) -19.8%
Net loss(1,046,997) -23.1% 49,239 1.1% (997,758) -22.0%
Accretion on redeemable non-controlling interests to redemption value(142,742) -3.2% 142,742 3.2% — 0.0%
Net loss attributable to ordinary shareholders of NIO Inc.(1,187,937) -26.2% 191,981 4.2% (995,956) -22.0%

Net loss per share attributable to ordinary shareholders, basic and diluted (RMB)(0.98) 0.16 (0.82)
Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)(0.98) 0.16 (0.82)

__________________________

i All translations from RMB to USD for the third quarter of 2021 were made at the rate of RMB6.4434 to US$1.00, the noon buying rate in effect on September 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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