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NIO Inc. Reports Unaudited Third Quarter 2024 Financial Results

November 20, 2024 4:31 AM

Quarterly Total Revenues reached RMB18,673.5 million (US$2,661.0 million)i
Quarterly Vehicle Deliveries were 61,855 units

SHANGHAI, Nov. 20, 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 third quarter ended September 30, 2024.

Operating Highlights for the Third Quarter of 2024

Key Operating Results
2024 Q32024 Q22024 Q12023 Q4
Deliveries61,85557,37330,05350,045
2023 Q32023 Q22023 Q12022 Q4
Deliveries55,43223,52031,04140,052


Financial Highlights for the Third Quarter of 2024

Key Financial Results for the Third Quarter of 2024

(in RMB million, except for percentage)

2024 Q32024 Q2 2023 Q3 % Changeiii
QoQYoY
Vehicle Sales 16,697.615,679.6 17,408.9 6.5%-4.1%
Vehicle Margin 13.1%12.2% 11.0% 90bp210bp
Total Revenues 18,673.517,446.0 19,066.6 7.0%-2.1%
Gross Profit 2,007.41,688.7 1,523.3 18.9%31.8%
Gross Margin 10.7%9.7% 8.0% 100bp270bp
Loss from Operations (5,237.8)(5,209.3) (4,843.9) 0.5%8.1%
Adjusted Loss from Operations (non-GAAP)(4,590.7)(4,698.5) (4,240.4) -2.3%8.3%
Net Loss (5,059.7)(5,046.0) (4,556.7) 0.3%11.0%
Adjusted Net Loss (non-GAAP)(4,412.6)(4,535.2) (3,953.2) -2.7%11.6%


Recent Developments

Deliveries in October 2024

Launch of ONVO L60

NIO China Strategic Investment

CEO and CFO Comments

“In the third quarter of 2024, we achieved a record-breaking delivery of 61,855 smart electric vehicles. NIO brand has firmly secured the top position in China’s BEV market for vehicles priced over RMB 300,000, holding more than a 40% market share in the first three quarters of this year,” said William Bin Li, founder, chairman and chief executive officer of NIO, “Deliveries of the ONVO L60 have also commenced, with production capacity set to rapidly expand in the next few months. The Company's total delivery volume for the fourth quarter is expected to reach a new record.”

“NIO’s executive flagship, the ET9, is in the final preparation stage of mass production. The ET9 embodies NIO’s full-stack technological expertise with cutting-edge global innovations, and its mass production will further solidify NIO’s positioning in the premium segment. In addition, firefly, a boutique brand positioned in the compact vehicle segment, will be unveiled at NIO Day 2024, further enriching our product portfolio and catering to a larger user base,” added William Bin Li.

“Ongoing cost optimizations helped increase the vehicle gross margin to 13.1% in the third quarter of 2024. With continued expansion in sales volume and steady improvement in gross margin, our free cash flow turned positive this quarter,” added Stanley Yu Qu, NIO’s chief financial officer, “Starting next year, our three brands are poised to embark on a robust product cycle, projected to elevate the Company’s sales volume to new heights. We expect this momentum will drive continued improvements in the Company’s operational and financial performance.”

Financial Results for the Third 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 fourth 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 7:00 AM U.S. Eastern Time on November 20, 2024 (8:00 PM Beijing/Hong Kong/Singapore Time on November 20, 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/10043136-gh7y6t.html

A replay of the conference call will be accessible by phone at the following numbers, until November 27, 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:10043136


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 RMB7.0176 to US$1.00, the noon buying rate in effect on September 30, 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, 2023September 30, 2024September 30, 2024
RMBRMBUS$
ASSETS
Current assets:
Cash and cash equivalents 32,935,11123,791,9033,390,319
Restricted cash 5,542,2714,920,257701,131
Short-term investments 16,810,10713,358,4961,903,570
Trade and notes receivables 4,657,6521,903,642271,267
Amounts due from related parties 1,722,6035,122,638729,970
Inventory 5,277,7266,818,641971,649
Prepayments and other current assets 3,434,7634,140,854590,067
Total current assets 70,380,23360,056,4318,557,973
Non-current assets:
Long-term restricted cash 144,125101,21614,423
Property, plant and equipment, net. 24,847,00424,618,0393,508,042
Intangible assets, net………………………………………………29,64829,6484,225
Land use rights, net 207,299203,32128,973
Long-term investments 5,487,2163,731,701531,763
Right-of-use assets - operating lease 11,404,11611,890,0601,694,320
Other non-current assets 4,883,5613,358,601478,597
Total non-current assets 47,002,96943,932,5866,260,343
Total assets 117,383,202103,989,01714,818,316
LIABILITIES
Current liabilities:
Short-term borrowings 5,085,4116,010,924856,550
Trade and notes payable 29,766,13430,197,0214,303,041
Amounts due to related parties, current 561,625264,50837,692
Taxes payable 349,349558,55879,594
Current portion of operating lease liabilities 1,743,1561,781,617253,878
Current portion of long-term borrowings 4,736,0874,229,267602,666
Accruals and other liabilities 15,556,35414,430,8522,056,380
Total current liabilities 57,798,11657,472,7478,189,801
Non-current liabilities:
Long-term borrowings 13,042,86111,281,9941,607,671
Non-current operating lease liabilities 10,070,05710,575,7481,507,032
Deferred tax liabilities 212,347210,16629,948
Amounts due to related parties, non-current -318,48145,383
Other non-current liabilities 6,663,8058,059,2861,148,439
Total non-current liabilities 29,989,07030,445,6754,338,473
Total liabilities 87,787,18687,918,42212,528,274


NIO INC.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands)
As of
December 31, 2023September 30, 2024September 30, 2024
RMBRMBUS$
MEZZANINE EQUITY
Redeemable non-controlling interests3,860,3844,552,963648,792
Total mezzanine equity 3,860,3844,552,963648,792
SHAREHOLDERS’ EQUITY
Total NIO Inc. shareholders’ equity 25,546,23311,346,8371,616,912
Non-controlling interests 189,399170,79524,338
Total shareholders’ equity 25,735,63211,517,6321,641,250
Total liabilities, mezzanine equity and shareholders’ equity 117,383,202103,989,01714,818,316



NIO INC.
Unaudited Condensed Consolidated Statements of Comprehensive Loss
(All amounts in thousands, except for share and per share/ADS data)
Three Months Ended
September 30, 2023June 30, 2024September 30, 2024September 30, 2024
RMBRMBRMBUS$
Revenues:
Vehicle sales 17,408,864 15,679,623 16,697,558 2,379,383
Other sales 1,657,687 1,766,345 1,975,970 281,573
Total revenues 19,066,551 17,445,968 18,673,528 2,660,956
Cost of sales: 　　　　
Vehicle sales (15,491,494)(13,773,438)(14,516,999)(2,068,656)
Other sales (2,051,734)(1,983,815)(2,149,156)(306,252)
Total cost of sales (17,543,228)(15,757,253)(16,666,155)(2,374,908)
Gross profit 1,523,323 1,688,715 2,007,373 286,048
Operating expenses:
Research and development (3,039,089)(3,218,522)(3,318,740)(472,917)
Selling, general and administrative (3,609,319)(3,757,458)(4,108,806)(585,500)
Other operating income 281,174 77,967 182,406 25,993
Total operating expenses (6,367,234)(6,898,013)(7,245,140)(1,032,424)
Loss from operations (4,843,911)(5,209,298)(5,237,767)(746,376)
Interest and investment income 288,014 362,731 310,123 44,192
Interest expenses (88,546)(176,141)(203,761)(29,036)
Gain on extinguishment of debt 170,193 — — —
Share of income/(losses) of equity investees 7,781 (73,607)(199,662)(28,452)
Other (losses)/income, net (88,645)52,351 309,654 44,125
Loss before income tax expense (4,555,114)(5,043,964)(5,021,413)(715,547)
Income tax expense (1,610)(2,019)(38,265)(5,453)
Net loss (4,556,724)(5,045,983)(5,059,678)(721,000)
Accretion on redeemable non-controlling interests to redemption value (77,159)(83,022)(91,400)(13,024)
Net loss attributable to non-controlling interests 5,254 2,635 9,443 1,346
Net loss attributable to ordinary shareholders of NIO Inc. (4,628,629)(5,126,370)(5,141,635)(732,678)
Net loss (4,556,724)(5,045,983)(5,059,678)(721,000)
Other comprehensive (loss)/income
Foreign currency translation adjustment, net of nil tax (61,222)89,483 (298,383)(42,519)
Total other comprehensive (loss)/income (61,222 )89,483 (298,383)(42,519)
Total comprehensive loss (4,617,946)(4,956,500)(5,358,061)(763,519)
Accretion on redeemable non-controlling interests to redemption value (77,159)(83,022)(91,400)(13,024)
Net loss attributable to non-controlling interests 5,254 2,635 9,443 1,346
Comprehensive loss attributable to ordinary shareholders of NIO Inc. (4,689,851)(5,036,887)(5,440,018)(775,197)


Weighted average number of ordinary shares/ADS used in computing net loss per share/ADS
Basic and diluted 1,735,661,387 2,049,836,045 2,055,159,231 2,055,159,231
Net loss per share/ADS attributable to ordinary shareholders
Basic and diluted (2.67)(2.50)(2.50)(0.36)


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 September 30, 2024
GAAP
Result		Share-based
compensation		Accretion on redeemable
non-controlling interests
to redemption value		Adjusted
Result
(Non-GAAP)
RMBRMBRMBRMB
Cost of sales (16,666,155)23,688—(16,642,467)
Research and development expenses (3,318,740)415,955—(2,902,785)
Selling, general and administrative expenses (4,108,806)207,413—(3,901,393)
Total (24,093,701)647,056—(23,446,645)
Loss from operations (5,237,767)647,056—(4,590,711)
Net loss (5,059,678)647,056—(4,412,622)
Net loss attributable to ordinary shareholders of NIO Inc. (5,141,635)647,05691,400(4,403,179)
Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB) (2.50)0.320.04(2.14)
Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (USD) (0.36)0.040.01(0.31)





Three Months Ended June 30, 2024
GAAP
Result		Share-based
compensation		Accretion on redeemable
non-controlling interests
to redemption value		Adjusted
Result
(Non-GAAP)
RMBRMBRMBRMB
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)510,75383,022(4,532,595)
Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB) (2.50)0.250.04(2.21)


Three Months Ended September 30, 2023
GAAP
Result		Share-based
compensation		Accretion on redeemable
non-controlling interests
to redemption value		Adjusted
Result
(Non-GAAP)
RMBRMBRMBRMB
Cost of sales (17,543,228)22,197—(17,521,031)
Research and development expenses (3,039,089)395,856—(2,643,233)
Selling, general and administrative expenses (3,609,319)185,496—(3,423,823)
Total (24,191,636)603,549—(23,588,087)
Loss from operations (4,843,911)603,549—(4,240,362)
Net loss (4,556,724)603,549—(3,953,175)
Net loss attributable to ordinary shareholders of NIO Inc. (4,628,629)603,54977,159(3,947,921)
Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB) (2.67)0.350.04(2.28)


i All translations from RMB to USD for three months ended September 30, 2024 were made at the rate of RMB7.0176 to US$1.00, the noon buying rate in effect on September 30, 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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