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NIO Inc. Reports Unaudited Second Quarter 2024 Financial Results

September 5, 2024 5:30 AM

Quarterly Total Revenues reached RMB17,446.0 million (US$2,400.6 million)i
Quarterly Vehicle Deliveries were 57,373 units

SHANGHAI, Sept. 05, 2024 (GLOBE NEWSWIRE) -- NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) (“NIO” or the “Company”), a pioneer and a leading company in the global smart electric vehicle market, today announced its unaudited financial results for the second quarter ended June 30, 2024.

Operating Highlights for the Second Quarter of 2024

Key Operating Results
2024 Q22024 Q12023 Q42023 Q3
Deliveries57,37330,05350,04555,432
2023 Q22023 Q12022 Q42022 Q3
Deliveries23,52031,04140,05231,607

Financial Highlights for the Second Quarter of 2024

Key Financial Results for the Second Quarter of 2024

(in RMB million, except for percentage)
2024 Q22024 Q1 2023 Q2 % Changeiii
QoQYoY
Vehicle Sales15,679.6 8,381.3 7,185.2 87.1% 118.2%
Vehicle Margin12.2% 9.2% 6.2% 300bp 600bp
Total Revenues17,446.0 9,908.6 8,771.7 76.1% 98.9%
Gross Profit1,688.7 487.7 87.0 246.3% 1,841.0%
Gross Margin9.7% 4.9% 1.0% 480bp 870bp
Loss from Operations(5,209.3) (5,394.1) (6,074.1) -3.4% -14.2%
Adjusted Loss from Operations (non-GAAP)(4,698.5) (5,112.7) (5,464.1) -8.1% -14.0%
Net Loss(5,046.0) (5,184.6) (6,055.8) -2.7% -16.7%
Adjusted Net Loss (non-GAAP)(4,535.2) (4,903.2) (5,445.7) -7.5% -16.7%

Recent Developments

Deliveries in July and August 2024

Power Up Counties Plan

Share Issuance for Share Incentive Plans

CEO and CFO Comments

“In the second quarter of 2024, NIO achieved a record-breaking delivery of 57,373 premium smart electric vehicles, securing over 40% of the market share in the battery electric vehicle segment priced above RMB 300,000 in China,” said William Bin Li, founder, chairman and chief executive officer of NIO, “NIO’s core competitive advantages in technology, product, service and community are earning increasing recognition from users, driving the continued strong vehicle sales performance. In July and August 2024, NIO delivered 20,498 and 20,176 vehicles, respectively. The total delivery volume for the third quarter is expected to set another record, further solidifying and expanding market share.”

“At the AI-themed NIO IN 2024, we unveiled major technological breakthroughs across multiple domains, including the in-house developed intelligent driving chip, full-domain vehicle operating system, smart system and intelligent driving. Through sustained and dedicated investment in technological research and development, NIO has positioned itself at the forefront of product and technological innovation, while achieving long-term cost competitiveness. Additionally, on September 1, 105 ONVO brand stores opened simultaneously. The brand’s inaugural model, L60 has commenced its initial presentations and is expected to be officially launched and begin deliveries within this month. L60 has been widely embraced by the market since its debut and we expect the new brand to secure a strong position for us in the mass market,” added William Bin Li.

“Due to ongoing cost optimizations, our vehicle gross margin increased to 12.2% in the second quarter,” added Stanley Yu Qu, NIO’s chief financial officer, “We will continue to focus on efficient R&D and infrastructure investment, leverage the growth potential in the mass market, adopt flexible market strategies and continuously optimize our product portfolio. We are confident that these efforts will result in steady improvements in gross profit and cost efficiency in the future.”

Financial Results for the Second Quarter of 2024

Revenues

Cost of Sales and Gross Margin

Operating Expenses

Loss from Operations

Net Loss and Earnings Per Share/ADS

Balance Sheet

Business Outlook

For the third quarter of 2024, 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 September 5, 2024 (8:00 PM Beijing/Hong Kong/Singapore Time on September 5, 2024).

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. Dial-in numbers, passcode and unique access PIN would be provided upon registering.

https://s1.c-conf.com/diamondpass/10041542-rfivqj.html

A replay of the conference call will be accessible by phone at the following numbers, until September 12, 2024:

United States:+1-855-883-1031
Hong Kong, China:+852-800-930-639
Mainland, China:+86-400-1209-216
Singapore:+65-800-1013-223
International:+61-7-3107-6325
Replay PIN:10041542

About NIO Inc.

NIO Inc. is a pioneer and a leading company in the global smart electric vehicle market. Founded in November 2014, NIO aspires to shape a sustainable and brighter future with the mission of “Blue Sky Coming”. NIO envisions itself as a user enterprise where innovative technology meets experience excellence. NIO designs, develops, manufactures and sells smart electric vehicles, driving innovations in next-generation core technologies. NIO distinguishes itself through continuous technological breakthroughs and innovations, exceptional products and services, and a community for shared growth. NIO provides premium smart electric vehicles under the NIO brand, and family-oriented smart electric vehicles through the ONVO brand.

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 (the “SEC”), in its annual report to shareholders, in announcements, circulars or other publications made on the websites of each of The Stock Exchange of Hong Kong Limited (the “SEHK”) and the Singapore Exchange Securities Trading Limited (the “SGX-ST”), 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 vehicles 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 battery swapping, BaaS, and NIO Assisted and Intelligent Driving and its subscription services; 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 its vehicles; its ability to control costs associated with its operations; its ability to build its current and future brands; 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 and the announcements and filings on the websites of each of the SEHK and SGX-ST. 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) and adjusted basic and diluted net loss per share/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) and 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/ADS (non-GAAP) as net loss attributable to ordinary shareholders and basic and diluted net loss per share/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 RMB7.2672 to US$1.00, the noon buying rate in effect on June 28, 2024 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.

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

Investor Relations
[email protected]
Media Relations
[email protected]

Source: NIO


NIO INC.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands)
As of
December 31, 2023 June 30, 2024 June 30, 2024
RMB RMB US$
ASSETS
Current assets:
Cash and cash equivalents 32,935,111 24,652,488 3,392,295
Restricted cash 5,542,271 3,689,287 507,663
Short-term investments 16,810,107 11,616,175 1,598,439
Trade and notes receivables 4,657,652 1,939,329 266,861
Amounts due from related parties 1,722,603 3,696,187 508,612
Inventory 5,277,726 4,885,743 672,301
Prepayments and other current assets 3,434,763 5,032,716 692,525
Total current assets 70,380,233 55,511,925 7,638,696
Non-current assets:
Long-term restricted cash 144,125 100,118 13,777
Property, plant and equipment, net. 24,847,004 24,517,864 3,373,770
Intangible assets, net 29,648 29,648 4,080
Land use rights, net 207,299 204,647 28,160
Long-term investments 5,487,216 5,375,958 739,756
Right-of-use assets - operating lease 11,404,116 11,563,603 1,591,205
Other non-current assets 4,883,561 3,212,052 441,993
Total non-current assets 47,002,969 45,003,890 6,192,741
Total assets 117,383,202 100,515,815 13,831,437
LIABILITIES
Current liabilities:
Short-term borrowings 5,085,411 5,302,326 729,624
Trade and notes payable 29,766,134 24,585,433 3,383,068
Amounts due to related parties 561,625 320,146 44,054
Taxes payable 349,349 691,051 95,092
Current portion of operating lease liabilities 1,743,156 1,748,419 240,590
Current portion of long-term borrowings 4,736,087 4,211,017 579,455
Accruals and other liabilities 15,556,354 13,295,715 1,829,551
Total current liabilities 57,798,116 50,154,107 6,901,434
Non-current liabilities:
Long-term borrowings 13,042,861 11,614,644 1,598,228
Non-current operating lease liabilities 10,070,057 10,247,541 1,410,109
Deferred tax liabilities 212,347 211,317 29,078
Amounts due to related parties - 282,733 38,905
Other non-current liabilities 6,663,805 7,289,020 1,003,004
Total non-current liabilities 29,989,070 29,645,255 4,079,324
Total liabilities 87,787,186 79,799,362 10,980,758


NIO INC.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands)
As of
December 31, 2023 June 30, 2024 June 30, 2024
RMB RMB US$
MEZZANINE EQUITY
Redeemable non-controlling interests 3,860,384 4,461,563 613,932
Total mezzanine equity 3,860,384 4,461,563 613,932
SHAREHOLDERS’ EQUITY
Total NIO Inc. shareholders’ equity 25,546,233 16,074,652 2,211,945
Non-controlling interests 189,399 180,238 24,802
Total shareholders’ equity 25,735,632 16,254,890 2,236,747
Total liabilities, mezzanine equity and shareholders’ equity 117,383,202 100,515,815 13,831,437


NIO INC.
Unaudited Condensed Consolidated Statements of Comprehensive Loss
(All amounts in thousands, except for share and per share/ADS data)
Three Months Ended
June 30, 2023 March 31, 2024 June 30, 2024 June 30, 2024
RMB RMB RMB US$
Revenues:
Vehicle sales 7,185,214 8,381,318 15,679,623 2,157,588
Other sales 1,586,521 1,527,318 1,766,345 243,057
Total revenues 8,771,735 9,908,636 17,445,968 2,400,645
Cost of sales: 　 　 　 　
Vehicle sales (6,738,344) (7,613,242) (13,773,438) (1,895,288)
Other sales (1,946,435) (1,807,663) (1,983,815) (272,982)
Total cost of sales (8,684,779) (9,420,905) (15,757,253) (2,168,270)
Gross profit 86,956 487,731 1,688,715 232,375
Operating expenses:
Research and development (3,344,572) (2,864,216) (3,218,522) (442,883)
Selling, general and administrative (2,856,603) (2,996,798) (3,757,458) (517,043)
Other operating income/(losses) 40,104 (20,790) 77,967 10,729
Total operating expenses (6,161,071) (5,881,804) (6,898,013) (949,197)
Loss from operations (6,074,115) (5,394,073) (5,209,298) (716,822)
Interest and investment income 247,180 350,793 362,731 49,913
Interest expenses (82,440) (170,875) (176,141) (24,238)
Loss on extinguishment of debt — (11,326) — —
Share of income/(losses) of equity investees 10,641 (19,482) (73,607) (10,129)
Other (losses)/income, net (138,345) 67,376 52,351 7,204
Loss before income tax expense (6,037,079) (5,177,587) (5,043,964) (694,072)
Income tax expense (18,671) (6,990) (2,019) (278)
Net loss (6,055,750) (5,184,577) (5,045,983) (694,350)
Accretion on redeemable non-controlling interests to redemption value (74,772) (79,524) (83,022) (11,424)
Net loss attributable to non-controlling interests 8,586 6,183 2,635 363
Net loss attributable to ordinary shareholders of NIO Inc. (6,121,936) (5,257,918) (5,126,370) (705,411)
Net loss (6,055,750) (5,184,577) (5,045,983) (694,350)
Other comprehensive income
Change in unrealized gains on cash flow hedges 1,329 — — —
Foreign currency translation adjustment, net of nil tax 327,472 7,468 89,483 12,313
Total other comprehensive income 328,801 7,468 89,483 12,313
Total comprehensive loss (5,726,949) (5,177,109) (4,956,500) (682,037)
Accretion on redeemable non-controlling interests to redemption value (74,772) (79,524) (83,022) (11,424)
Net loss attributable to non-controlling interests 8,586 6,183 2,635 363
Comprehensive loss attributable to ordinary shareholders of NIO Inc. (5,793,135) (5,250,450) (5,036,887) (693,098)
Weighted average number of ordinary shares/ADS used in computing net loss per share/ADS
Basic and diluted 1,652,857,917 2,044,151,465 2,049,836,045 2,049,836,045
Net loss per share/ADS attributable to ordinary shareholders
Basic and diluted (3.70) (2.57) (2.50) (0.34)


NIO INC.
Unaudited Condensed Consolidated Statements of Comprehensive Loss
(All amounts in thousands, except for share and per share/ADS data)
Six Months Ended
June 30, 2023 June 30, 2024 June 30, 2024
RMB RMB US$
Revenues:
Vehicle sales 16,409,697 24,060,941 3,310,896
Other sales 3,038,509 3,293,663 453,223
Total revenues 19,448,206 27,354,604 3,764,119
Cost of sales: 　 　
Vehicle sales (15,495,751) (21,386,680) (2,942,905)
Other sales (3,703,210) (3,791,478) (521,725)
Total cost of sales (19,198,961) (25,178,158) (3,464,630)
Gross profit 249,245 2,176,446 299,489
Operating expenses:
Research and development (6,420,183) (6,082,738) (837,013)
Selling, general and administrative (5,302,531) (6,754,256) (929,416)
Other operating income 287,506 57,177 7,868
Total operating expenses (11,435,208) (12,779,817) (1,758,561)
Loss from operations (11,185,963) (10,603,371) (1,459,072)
Interest and investment income 553,942 713,524 98,184
Interest expenses (151,103) (347,016) (47,751)
Loss on extinguishment of debt — (11,326) (1,559)
Share of income/(losses) of equity investees 24,240 (93,089) (12,809)
Other (losses)/income, net (10,055) 119,727 16,475
Loss before income tax expense (10,768,939) (10,221,551) (1,406,532)
Income tax expense (26,345) (9,009) (1,240)
Net loss (10,795,284) (10,230,560) (1,407,772)
Accretion on redeemable non-controlling interests to redemption value (147,237) (162,546) (22,367)
Net loss attributable to non-controlling interests 16,956 8,818 1,213
Net loss attributable to ordinary shareholders of NIO Inc. (10,925,565) (10,384,288) (1,428,926)
Net loss (10,795,284) (10,230,560) (1,407,772)
Other comprehensive income
Foreign currency translation adjustment, net of nil tax 272,867 96,951 13,341
Total other comprehensive income 272,867 96,951 13,341
Total comprehensive loss (10,522,417) (10,133,609) (1,394,431)
Accretion on redeemable non-controlling interests to redemption value (147,237) (162,546) (22,367)
Net loss attributable to non-controlling interests 16,956 8,818 1,213
Comprehensive loss attributable to ordinary shareholders of NIO Inc. (10,652,698) (10,287,337) (1,415,585)
Weighted average number of ordinary shares/ADS used in computing net loss per share/ADS
Basic and diluted 1,651,113,461 2,047,257,903 2,047,257,903
Net loss per share/ADS attributable to ordinary shareholders
Basic and diluted (6.62) (5.07) (0.70)


NIO INC.
Unaudited Reconciliation of GAAP and Non-GAAP Results
(All amounts in thousands, except for share and per share/ADS data)
Three Months Ended June 30, 2024
GAAP
Result		 Share-based
compensation		 Accretion on redeemable
non-controlling interests
to redemption value		 Adjusted
Result
(Non-GAAP)
RMB RMB RMB RMB
Cost of sales (15,757,253) 18,698 — (15,738,555)
Research and development expenses (3,218,522) 330,110 — (2,888,412)
Selling, general and administrative expenses (3,757,458) 161,945 — (3,595,513)
Total (22,733,233) 510,753 — (22,222,480)
Loss from operations (5,209,298) 510,753 — (4,698,545)
Net loss (5,045,983) 510,753 — (4,535,230)
Net loss attributable to ordinary shareholders of NIO Inc. (5,126,370) 510,753 83,022 (4,532,595)
Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB) (2.50) 0.25 0.04 (2.21)
Net loss per ADS attributable to ordinary shareholders, basic and diluted (USD) (0.34) 0.03 0.01 (0.30)


(All amounts in thousands, except for share and per share/ADS data)
Three Months Ended March 31, 2024
GAAP
Result		 Share-based
compensation		 Accretion on redeemable
non-controlling interests
to redemption value		 Adjusted
Result
(Non-GAAP)
RMB RMB RMB RMB
Cost of sales (9,420,905) 9,753 — (9,411,152)
Research and development expenses (2,864,216) 205,983 — (2,658,233)
Selling, general and administrative expenses (2,996,798) 65,675 — (2,931,123)
Total (15,281,919) 281,411 — (15,000,508)
Loss from operations (5,394,073) 281,411 — (5,112,662)
Net loss (5,184,577) 281,411 — (4,903,166)
Net loss attributable to ordinary shareholders of NIO Inc. (5,257,918) 281,411 79,524 (4,896,983)
Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB) (2.57) 0.14 0.04 (2.39)


Three Months Ended June 30, 2023
GAAP
Result		 Share-based
compensation		 Accretion on redeemable
non-controlling interests
to redemption value		 Adjusted
Result
(Non-GAAP)
RMB RMB RMB RMB
Cost of sales (8,684,779) 23,887 — (8,660,892)
Research and development expenses (3,344,572) 401,689 — (2,942,883)
Selling, general and administrative expenses (2,856,603) 184,462 — (2,672,141)
Total (14,885,954) 610,038 — (14,275,916)
Loss from operations (6,074,115) 610,038 — (5,464,077)
Net loss (6,055,750) 610,038 — (5,445,712)
Net loss attributable to ordinary shareholders of NIO Inc. (6,121,936) 610,038 74,772 (5,437,126)
Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB) (3.70) 0.37 0.05 (3.28)


Six Months Ended June 30, 2024
GAAP
Result		 Share-based
compensation		 Accretion on redeemable
non-controlling interests
to redemption value		 Adjusted
Result
(Non-GAAP)
RMB RMB RMB RMB
Cost of sales (25,178,158) 28,451 — (25,149,707)
Research and development expenses (6,082,738) 536,093 — (5,546,645)
Selling, general and administrative expenses (6,754,256) 227,620 — (6,526,636)
Total (38,015,152) 792,164 — (37,222,988)
Loss from operations (10,603,371) 792,164 — (9,811,207)
Net loss (10,230,560) 792,164 — (9,438,396)
Net loss attributable to ordinary shareholders of NIO Inc. (10,384,288) 792,164 162,546 (9,429,578)
Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB) (5.07) 0.39 0.08 (4.60)
Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (USD) (0.70) 0.05 0.02 (0.63)


Six Months Ended June 30, 2023
GAAP
Result		 Share-based
compensation		 Accretion on redeemable
non-controlling interests
to redemption value		 Adjusted
Result
(Non-GAAP)
RMB RMB RMB RMB
Cost of sales (19,198,961) 42,655 — (19,156,306)
Research and development expenses (6,420,183) 765,656 — (5,654,527)
Selling, general and administrative expenses (5,302,531) 391,132 — (4,911,399)
Total (30,921,675) 1,199,443 — (29,722,232)
Loss from operations (11,185,963) 1,199,443 — (9,986,520)
Net loss (10,795,284) 1,199,443 — (9,595,841)
Net loss attributable to ordinary shareholders of NIO Inc. (10,925,565) 1,199,443 147,237 (9,578,885)
Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB) (6.62) 0.73 0.09 (5.80)


i All translations from RMB to USD for three months and six months ended June 28, 2024 were made at the rate of RMB7.2672 to US$1.00, the noon buying rate in effect on June 28, 2024 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 Except for gross margin and vehicle margin, where absolute changes instead of percentage changes are calculated.


Source: NIO Inc.

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