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UPDATE -- NIO Inc. Reports Unaudited First Quarter 2022 Financial Results

June 9, 2022 7:11 AM

Quarterly Total Revenues reached RMB9,910.6 million (US$1,563.4 million)iQuarterly Deliveries of the ES8, the ES6, the EC6 and the ET7 were 25,768 vehicles

SHANGHAI, China, June 09, 2022 (GLOBE NEWSWIRE) -- NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) (“NIO” or the “Company”), a pioneer and a leading company in the premium smart electric vehicle market, today announced its unaudited financial results for the first quarter ended March 31, 2022.

Operating Highlights for the First Quarter of 2022

Key Operating Results
2022 Q12021 Q42021 Q32021 Q2
Deliveries25,76825,03424,43921,896
2021 Q12020 Q42020 Q32020 Q2
Deliveries20,06017,35312,20610,331

Financial Highlights for the First Quarter of 2022

Key Financial Results
(in RMB million, except for per ordinary share data and percentage)
2022 Q12021 Q4 2021 Q1% Changeiv
QoQYoY
Vehicle Sales9,244.0 9,215.4 7,405.8 0.3%24.8%
Vehicle Margin18.1%20.9% 21.2%-280bp-310bp
Total Revenues9,910.6 9,900.7 7,982.3 0.1%24.2%
Gross Profit1,446.8 1,699.5 1,554.8 -14.9%-6.9%
Gross Margin14.6%17.2% 19.5%-260bp-490bp
Loss from Operations(2,188.7)(2,445.1) (295.9)-10.5%639.7%
Adjusted Loss from Operations (non-GAAP)(1,715.6)(2,048.4) (199.4)-16.2%760.4%
Net Loss(1,782.7)(2,143.4) (451.0)-16.8%295.3%
Adjusted Net Loss (non-GAAP)(1,309.6)(1,746.7) (354.6)-25.0%269.3%
Net Loss Attributable to Ordinary Shareholders(1,825.0) (2,179.2) (4,875.0)-16.3%-62.6%
Net Loss per Ordinary Share/ADS-Basic and Diluted(1.12)(1.36) (3.14)-17.6%-64.3%
Adjusted Net Loss per Ordinary Share/ADS-Basic and Diluted (non-GAAP)(0.79)(1.07) (0.23)-26.2%243.5%

Recent Developments

Deliveries in April and May 2022

Singapore Exchange Listing

CEO and CFO Comments

"We set new record-high quarterly deliveries of 25,768 vehicles in the first quarter of 2022, and hit the milestone of exceeding 200,000 vehicle deliveries in May within four years since our first delivery," said William Bin Li, founder, chairman and chief executive officer of NIO. "Despite the volatilities of supply chain and the challenges in vehicle delivery resulting from the recent COVID-19 resurgence, we witnessed robust demand for our complementary products and achieved an all-time high order inflow in May 2022. On April 29, 2022, the first batch of tooling trial builds of the ET5 rolled off the production line at the new manufacturing plant at NeoPark in Hefei. We expect to start delivery of the ET5 in September 2022. In addition, we will further enhance our product offering by introducing the ES7, a new mid-to-large five-seater SUV based on NIO Technology 2.0 (NT2.0), in June and expect to start its delivery in late August," concluded Mr. Li.

"NIO successfully listed on the Main Board of the Singapore Exchange Securities Trading Limited on May 20, 2022, further strengthening our footing in the global capital markets," added Steven Wei Feng, chief financial officer of NIO. "To quickly recover from the COVID-19 impact and fulfill the growing market demand, we have been working closely with supply chain partners to ramp up the production capacity and accelerate the vehicle delivery since the beginning of June. While making decisive investments in new products, technologies and businesses, we strive to continuously optimize our cost structure, improve operating efficiency and create long-term value for our shareholders."

Financial Results for the First Quarter of 2022

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 second quarter of 2022, 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 AM U.S. Eastern Time on June 9, 2022 (8:00 PM Beijing/Hong Kong/Singapore Time on June 9, 2022).

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/5756039

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 June 16, 2022 09:59 AM ET:

United States:+1-646-254-3697
Hong Kong, China:+852-3051-2780
Mainland, China:+86-400-820-9703
Singapore:+65-3158-3682
International:+61-2-8199-0299
Conference ID:5756039

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, began deliveries of the ET7 in March 2022. NIO launched the ET5, a mid-size premium smart electric sedan, in December 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 announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited, 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, ET7 and ET5; 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 U.S. Securities and Exchange Commission and The Stock Exchange of Hong Kong Limited. 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. The Company defines 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) and adjusted net loss (non-GAAP) as cost of sales, research and development expenses, selling, general and administrative expenses, loss from operations and net loss excluding share-based compensation expenses. The Company defines 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) as net loss attributable to ordinary shareholders, basic and diluted net loss per share and basic and diluted net loss per ADS excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value. 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 RMB6.3393 to US$1.00, the noon buying rate in effect on March 31, 2022 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.

Investor Relations[email protected]

Media Relations[email protected]

Source: NIO

NIO INC.
Unaudited Consolidated Balance Sheets
(All amounts in thousands)
As of
December 31,2021 March 31,2022 March 31,2022
RMB RMB US$
ASSETS
Current assets:
Cash and cash equivalents 15,333,719 15,900,150 2,508,187
Restricted cash2,994,408 3,931,294 620,146
Short-term investments 37,057,554 33,507,432 5,285,668
Trade and notes receivable 2,797,805 3,001,784 473,520
Amounts due from related parties 1,551,334 2,200,326 347,093
Inventory2,056,352 2,676,502 422,208
Prepayments and other current assets 1,850,143 3,090,967 487,587
Total current assets63,641,315 64,308,455 10,144,409
Non-current assets:
Long-term restricted cash46,437 48,485 7,648
Property, plant and equipment, net 7,399,516 8,641,032 1,363,090
Land use rights, net 199,121 197,910 31,220
Long-term investments 3,059,383 4,050,220 638,907
Right-of-use assets - operating lease2,988,374 3,268,714 515,627
Other non-current assets 5,549,455 6,679,478 1,053,662
Total non-current assets19,242,286 22,885,839 3,610,154
Total assets 82,883,601 87,194,294 13,754,563
LIABILITIES
Current liabilities:
Short-term borrowings 5,230,000 6,075,000 958,308
Trade and notes payable 12,638,991 14,843,784 2,341,549
Amounts due to related parties687,200 649,473 102,452
Taxes payable627,794 362,901 57,246
Current portion of operating lease liabilities 744,561 812,571 128,180
Current portion of long-term borrowings 2,067,962 1,538,477 242,689
Accruals and other liabilities 7,201,644 7,630,103 1,203,618
Total current liabilities 29,198,152 31,912,309 5,034,042
Non-current liabilities:
Long-term borrowings 9,739,176 11,115,321 1,753,399
Non-current operating lease liabilities 2,317,193 2,548,976 402,091
Deferred tax liabilities25,199 220,345 34,759
Other non-current liabilities 3,540,458 3,911,088 616,959
Total non-current liabilities 15,622,026 17,795,730 2,807,208
Total liabilities 44,820,178 49,708,039 7,841,250

NIO INC.
Unaudited Consolidated Balance Sheets
(All amounts in thousands)
As of
December 31,2021 March 31,2022 March 31,2022
RMB RMB US$
MEZZANINE EQUITY
Redeemable non-controlling interests3,277,866 3,344,641 527,604
Total mezzanine equity 3,277,866 3,344,641 527,604
SHAREHOLDERS’ EQUITY
Total NIO Inc. shareholders’ equity 34,709,924 33,940,237 5,353,942
Non-controlling interests 75,633 201,377 31,767
Total shareholders’ equity 34,785,557 34,141,614 5,385,709
Total liabilities, mezzanine equity and shareholders’ equity82,883,601 87,194,294 13,754,563

NIO INC.
Unaudited Consolidated Statements of Comprehensive Loss
(All amounts in thousands, except for share and per share data)
Three Months Ended
March 31,2021 December 31,2021 March 31,2022 March 31,2022
RMB RMB RMB US$
Revenues:
Vehicle sales 7,405,787 9,215,375 9,244,014 1,458,207
Other sales 576,546 685,367 666,574 105,149
Total revenues 7,982,333 9,900,742 9,910,588 1,563,356
Cost of sales:
Vehicle sales (5,838,942) (7,291,520) (7,567,550) (1,193,752)
Other sales (588,585) (909,678) (896,199) (141,372)
Total cost of sales (6,427,527) (8,201,198) (8,463,749) (1,335,124)
Gross profit 1,554,806 1,699,544 1,446,839 228,232
Operating expenses:
Research and development (686,548) (1,828,516) (1,761,687) (277,899)
Selling, general and administrative (1,197,248) (2,358,249) (2,014,804) (317,828)
Other operating income33,066 42,090 140,987 22,240
Total operating expenses (1,850,730) (4,144,675) (3,635,504) (573,487)
Loss from operations (295,924) (2,445,131) (2,188,665) (345,255)
Interest and investment income 119,618 359,061 400,688 63,207
Interest expenses (423,756) (75,937) (77,339) (12,200)
Share of income/(loss) of equity investees 103,288 (1,697) 26,229 4,138
Other income 49,683 53,522 86,886 13,706
Loss before income tax expense (447,091) (2,110,182) (1,752,201) (276,404)
Income tax expense(3,957) (33,247) (30,459) (4,805)
Net loss (451,048) (2,143,429) (1,782,660) (281,209)
Accretion on redeemable non-controlling interests to redemption value (4,423,996) (66,881) (66,775) (10,533)
Net loss attributable to non-controlling interests84 31,088 24,397 3,849
Net loss attributable to ordinary shareholders of NIO Inc. (4,874,960) (2,179,222) (1,825,038) (287,893)
Net loss (451,048) (2,143,429) (1,782,660) (281,209)
Other comprehensive income/(loss)
Change in unrealized gains related to available-for-sale debt securities, net of tax — 24,224 743,103 117,221
Foreign currency translation adjustment, net of nil tax (74,529) (61,401) (38,879) (6,133)
Total other comprehensive (loss)/income(74,529) (37,177) 704,224 111,088
Total comprehensive loss (525,577) (2,180,606) (1,078,436) (170,121)

Accretion on redeemable non-controlling interests to redemption value (4,423,996) (66,881) (66,775) (10,533)
Net loss attributable to non-controlling interests 84 31,088 24,397 3,849
Other comprehensive income attributable to non-controlling interests— (4,727) (150,141) (23,684)
Comprehensive loss attributable to ordinary shareholders of NIO Inc. (4,949,489) (2,221,126) (1,270,955) (200,489)

Weighted average number of ordinary shares used in computing net loss per share
Basic and diluted 1,551,918,888 1,607,187,119 1,624,805,030 1,624,805,030
Net loss per share attributable to ordinary shareholders
Basic and diluted (3.14) (1.36) (1.12) (0.18)
Weighted average number of ADS used in computing net loss per share
Basic and diluted 1,551,918,888 1,607,187,119 1,624,805,030 1,624,805,030
Net loss per ADS attributable to ordinary shareholders
Basic and diluted (3.14) (1.36) (1.12) (0.18)

NIO INC.
Unaudited Reconciliation of GAAP and Non-GAAP Results
(All amounts in thousands, except for share and per share data)
Three Months Ended March 31, 2022
GAAPResult Share-based compensation Accretion on redeemable non-controlling interests to redemption valueAdjustedResult(Non-GAAP)
RMB RMB RMBRMB
Cost of sales (8,463,749) 12,125 — (8,451,624)
Research and development expenses (1,761,687) 247,621 — (1,514,066)
Selling, general and administrative expenses (2,014,804) 213,293 — (1,801,511)
Total (12,240,240) 473,039 — (11,767,201)
Loss from operations (2,188,665) 473,039 — (1,715,626)
Net loss (1,782,660) 473,039 — (1,309,621)
Net loss attributable to ordinary shareholders of NIO Inc. (1,825,038) 473,039 66,775 (1,285,224)
Net loss per share attributable to ordinary shareholders, basic and diluted (RMB)(1.12) 0.29 0.04 (0.79)
Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)(1.12) 0.29 0.04 (0.79)
Net loss per ADS attributable to ordinary shareholders, basic and diluted (USD) (0.18) 0.05 — (0.13)

Three Months Ended December 31, 2021
GAAPResult Share-based compensation Accretion on redeemable non-controlling interests to redemption valueAdjustedResult(Non-GAAP)
RMB RMB RMBRMB
Cost of sales (8,201,198) 11,944 — (8,189,254)
Research and development expenses (1,828,516) 189,484 — (1,639,032)
Selling, general and administrative expenses (2,358,249) 195,263 — (2,162,986)
Total (12,387,963) 396,691 — (11,991,272)
Loss from operations (2,445,131) 396,691 — (2,048,440)
Net loss (2,143,429) 396,691 — (1,746,738)
Net loss attributable to ordinary shareholders of NIO Inc. (2,179,222) 396,691 66,881 (1,715,650)
Net loss per share attributable to ordinary shareholders, basic and diluted (RMB)(1.36) 0.25 0.04 (1.07)
Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)(1.36) 0.25 0.04 (1.07)

Three Months Ended March 31, 2021
GAAPResult Share-based compensation Accretion on redeemable non-controlling interests to redemption valueAdjustedResult(Non-GAAP)
RMB RMB RMBRMB
Cost of sales (6,427,527) 3,651 — (6,423,876)
Research and development expenses (686,548) 36,515 — (650,033)
Selling, general and administrative expenses (1,197,248) 56,314 — (1,140,934)
Total (8,311,323) 96,480 — (8,214,843)
Loss from operations (295,924) 96,480 — (199,444)
Net loss (451,048) 96,480 — (354,568)
Net loss attributable to ordinary shareholders of NIO Inc. (4,874,960) 96,480 4,423,996 (354,484)
Net loss per share attributable to ordinary shareholders, basic and diluted (RMB)(3.14) 0.06 2.85 (0.23)
Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)(3.14) 0.06 2.85 (0.23)

_____________________________________

i All translations from RMB to USD for the first quarter of 2022 were made at the rate of RMB6.3393 to US$1.00, the noon buying rate in effect on March 31, 2022 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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