NIO Inc. (“NIO” or the “Company”) (NYSE: NIO), a pioneer in China’s
premium smart electric vehicle market, today announced its
unaudited financial results for the second quarter ended June 30,
2020.
Operating Highlights for the Second
Quarter of 2020
- Deliveries of
vehicles were 10,331 in the second quarter of 2020,
including 8,068 ES6s and 2,263 ES8s, compared with 3,553 vehicles
delivered in the second quarter of 2019 and 3,838 vehicles
delivered in the first quarter of 2020.
Key Operating Results
|
2020 Q2 |
2020 Q1 |
2019 Q4 |
2019 Q3 |
Deliveries |
10,331 |
3,838 |
8,224 |
4,799 |
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2019 Q2 |
2019 Q1 |
2018 Q4 |
2018 Q3 |
Deliveries |
3,553 |
3,989 |
7,980 |
3,268 |
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Financial Highlights for the Second
Quarter of 2020
- Vehicle sales were
RMB3,486.1 million (US$493.4 million) in the second quarter of
2020, representing an increase of 146.5% from the second quarter of
2019 and an increase of 177.6% from the first quarter of 2020.
- Vehicle marginii
was 9.7%, compared with negative 24.1% in the second quarter of
2019 and negative 7.4% in the first quarter of 2020.
- Total revenues
were RMB3,718.9 million (US$526.4 million) in the second quarter of
2020, representing an increase of 146.5% from the second quarter of
2019 and an increase of 171.1% from the first quarter of 2020.
- Gross profit in
the second quarter of 2020 was RMB313.1 million (US$44.3 million),
representing an increase of RMB817.3 million from a gross loss of
RMB504.2 million in the second quarter of 2019 and an increase of
RMB480.6 million from a gross loss of RMB167.5 million in the first
quarter of 2020.
- Gross margin was
8.4%, compared with negative 33.4% in the second quarter of 2019
and negative 12.2% in the first quarter of 2020.
- Loss from
operations was RMB1,160.0 million (US$164.2 million) in
the second quarter of 2020, representing a decrease of 64.0% from
the second quarter of 2019 and a decrease of 26.1% from the first
quarter of 2020. Excluding share-based compensation expenses,
adjusted loss from operations (non-GAAP) was RMB1,114.7 million
(US$157.8 million) in the second quarter of 2020, representing a
decrease of 64.4 % from the second quarter of 2019 and a decrease
of 27.5% from the first quarter of 2020.
- Net loss was
RMB1,176.7 million (US$166.5 million) in the second quarter of
2020, representing a decrease of 64.2% from the second quarter of
2019 and a decrease of 30.4% from the first quarter of 2020.
Excluding share-based compensation expenses, adjusted net loss
(non-GAAP) was RMB1,131.4 million (US$160.1 million) in the second
quarter of 2020, representing a decrease of 64.6% from the second
quarter of 2019 and a decrease of 31.8% from the first quarter of
2020.
- Net loss attributable to
NIO’s ordinary shareholders was RMB1,207.8 million
(US$171.0 million) in the second quarter of 2020, representing a
decrease of 63.6% from the second quarter of 2019 and a decrease of
29.9% from the first quarter of 2020. Excluding share-based
compensation expenses and accretion on redeemable non-controlling
interests to redemption value, adjusted net loss attributable to
NIO’s ordinary shareholders (non-GAAP) was RMB1,131.0 million
(US$160.1 million).
- Basic and diluted net loss
per American Depositary Share (ADS)iii were both RMB1.15
(US$0.16) in the second quarter of 2020. Excluding share-based
compensation expenses and accretion on redeemable non-controlling
interests to redemption value, adjusted basic and diluted net loss
per ADS (non-GAAP) were both RMB1.08 (US$0.15).
- Cash and cash equivalents,
restricted cash and short-term investment were RMB11.2
billion (US$1.6 billion) as of June 30, 2020.
Key Financial Results
(in RMB million, except for per ordinary share data and
percentage) |
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|
2020 Q2 |
2020 Q1 |
2019 Q2 |
% Changeiv |
|
|
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|
|
QoQ |
|
YoY |
Vehicle Sales |
3,486.1 |
1,255.6 |
1,414.5 |
177.6% |
146.5% |
Vehicle Margin |
9.7% |
-7.4% |
-24.1% |
1,710bp |
3,380bp |
Total Revenues |
3,718.9 |
1,372.0 |
1,508.6 |
171.1% |
146.5% |
Gross Profit/(Loss) |
313.1 |
(167.5) |
(504.2) |
N/A |
N/A |
Gross Margin |
8.4% |
-12.2% |
-33.4% |
2,060bp |
4,180bp |
Loss from Operations |
(1,160.0) |
(1,570.3) |
(3,226.1) |
-26.1% |
-64.0% |
Adjusted
Loss from Operations (non-GAAP) |
(1,114.7) |
(1,537.9) |
(3,133.9) |
-27.5% |
-64.4% |
Net
Loss |
(1,176.7) |
(1,691.8) |
(3,285.8) |
-30.4% |
-64.2% |
Adjusted
Net Loss (non-GAAP) |
(1,131.4) |
(1,659.4) |
(3,193.6) |
-31.8% |
-64.6% |
Net Loss
Attributable to Ordinary Shareholders |
(1,207.8) |
(1,722.8) |
(3,313.7) |
-29.9% |
-63.6% |
Net Loss
per Ordinary Share-Basic and Diluted |
(1.15) |
(1.66) |
(3.23) |
-30.7% |
-64.4% |
Adjusted
Net Loss per Ordinary Share-Basic and Diluted (non-GAAP) |
(1.08) |
(1.60) |
(3.11) |
-32.5% |
-65.3% |
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Recent Developments
Deliveries in July 2020
- Deliveries of the ES8 and ES6 were
3,533 vehicles in July 2020, representing a robust 322.1%
year-over-year growth. The deliveries consisted of 2,610 ES6s, the
Company’s 5-seater high-performance premium smart electric SUV, and
923 ES8s, the Company’s 6-seater and 7-seater flagship premium
smart electric SUV. As of July 31, 2020, cumulative deliveries of
the ES8 and the ES6 reached 49,615 vehicles, of which 17,702 were
delivered in 2020.
EC6
- NIO launched the EC6 on July 24,
2020 at the Chengdu Motor Show. The 5-seater premium smart electric
coupe SUV starts at a pre-subsidy price of RMB 368,000, and is now
available to order via the NIO app with delivery to start in
September 2020.The new model inherits NIO family design language
with a touch of its stylish and sporty coupe silhouette. The EC6
boasts an excellent lightweight architecture and a drag coefficient
of only 0.26Cd. Its superior dimensions and 2.9-meter long
wheelbase offer a generous cabin space.The EC6 excels in
performance. Featuring a 160 kW PM motor in the front and a 240 kW
induction motor in the rear, the electric drive system of the EC6
realizes 544 PS in max power and 725 N·m in peak torque. Enabled by
its intelligent electric all-wheel-drive system, the EC6
accelerates from 0 to100 km/h in a snap of 4.5 seconds. Equipped
with the optional 100 kWh battery pack, it can reach an NEDC range
of up to 615 km.Outstanding in both design and performance, the NIO
EC6 presents itself as a highly competitive model for a younger and
broader user base, and an excellent addition to our existing
product lineup of ES8, the 6-seater and 7-seater flagship premium
smart electric SUV, and ES6, the 5-seater high-performance premium
smart electric SUV.
Substantial Completion of Cash
Injections into NIO China
- On June 29, 2020, the Company
announced that the strategic investors have substantially completed
the cash injection obligations for the first two installments of
their investments in NIO China. As of today, NIO (Anhui) Holding
Co., Ltd., or NIO Anhui, the legal entity of NIO China wholly owned
by the Company prior to the investments, has received from the
investors the RMB5 billion cash investments for the first two
installments in full. As previously disclosed by the Company, from
April to June 2020, for investments into NIO Anhui, the Company
entered into an investment agreement, as amended and supplemented
by supplemental investment agreements and a shareholders agreement,
as amended and supplemented by supplemental shareholders agreements
with Hefei City Construction and Investment Holding (Group) Co.,
Ltd., CMG-SDIC Capital Co., Ltd. and Anhui Provincial Emerging
Industry Investment Co., Ltd., and, as applicable, their respective
designated funds, Jianheng New Energy Fund, Advanced Manufacturing
Industry Investment Fund, Anhui Provincial Sanzhong Yichuang
Industry Development Fund Co., Ltd. and New Energy Automobile
Fund.NIO has also injected its cash investment of RMB1.278 billion
for the first installment and RMB1.278 billion for the second
installment and is fulfilling its other obligations, including
injecting the Asset Consideration into NIO Anhui, in accordance
with the definitive agreements.
Completion of Offering of American
Depositary Shares
- In June 2020, NIO completed the
offering of 72,000,000 American depositary shares, each
representing one Class A ordinary share of the Company, at a price
of US$5.95 per ADS, and an additional overallotment of 10,800,000
American depositary shares. NIO plans to use the net proceeds from
the ADS Offering mainly to fund its cash investments in NIO China,
as well as other working capital needs. The Company expects NIO
China to use the cash investments for research and development of
products, services and technology, development of our manufacturing
facilities and roll-out of our supply chain, operation and
development of our sales and service network and general business
support purpose.
CEO and CFO Comments
“We achieved a record-high quarterly deliveries
of 10,331 ES8 and ES6 vehicles in total in the second quarter of
2020 and expect to deliver 11,000 to 11,500 vehicles in the third
quarter as the momentum continues,” said William Bin Li, founder,
chairman and chief executive officer of NIO. “The current
constraints on the productions will be lifted in the near future
and we are confident that our production capacity can meet the
accelerated demand of our models.”
“Beyond the strong order growth, we are proud to
reach a milestone quarter with respect to the key financial metrics
of the Company, highlighted with the historically high vehicle
gross margin of 9.7%, lowest-ever operating losses and more
importantly, a positive cash flow from operations for the first
time in our history. We will continue to focus on improving
operating efficiency across the company. Meanwhile, we stay
committed to investing in the technologies and services to provide
our users with the best products and experience in the future and
to strengthening our leadership in the smart EV sector,” concluded
Mr. Li.
“With the strong deliveries in the second
quarter 2020, our vehicle margin significantly exceeded our target
of over 5%, attributed to the increasing scale, higher average
revenue per vehicle, reduced material costs and improved
manufacturing efficiency,” added Wei Feng, NIO’s chief financial
officer. “Additionally, we have demonstrated our capabilities to
generate positive cash flow from operations, through the continuous
improvement of our operational efficiency and our significantly
optimized cash flow management. We will continue to enhance our
efficiencies across the company in the rest of 2020 and
beyond.”
Financial Results for the Second Quarter of
2020
Revenues
- Total revenues
were RMB3,718.9 million (US$526.4 million) in the second quarter of
2020, representing an increase of 146.5% from the second quarter of
2019 and an increase of 171.1% from the first quarter of
2020.
- Vehicle sales were
RMB3,486.1 million (US$493.4 million) in the second quarter of
2020, representing an increase of 146.5% from the second quarter of
2019 and an increase of 177.6% from the first quarter of 2020. The
increase in vehicle sales of the second quarter of 2020, compared
to the second quarter of 2019, was mainly contributed by the sales
of the ES6 which began deliveries in late June 2019. The increase
in vehicle sales of the second quarter of 2020, compared to the
first quarter of 2020, was due to the increase of vehicle
deliveries recovered from the COVID-19 outbreak in
China.
- Other sales in the
second quarter of 2020 were RMB232.8 million (US$33.0 million),
representing an increase of 147.7% from the second quarter of 2019
and an increase of 100.0% from the first quarter of 2020. The
increase in other sales of the second quarter of 2020, compared to
the second quarter of 2019, was mainly attributed to increased
revenues derived from the home chargers installed, service package
and energy package subscribed, and accessories sold, which were in
line with the increased vehicle sales in the second quarter of
2020.
Cost of Sales and Gross
Margin
- Cost of sales in
the second quarter of 2020 was RMB3,405.8 million (US$482.1
million), representing an increase of 69.2% from the second quarter
of 2019 and an increase of 121.2% from the first quarter of 2020.
The increase in cost of sales compared to the second quarter of
2019 was mainly driven by the increase of delivery volume of the
ES6 and the ES8 in the second quarter of 2020.
- Gross profit in
the second quarter of 2020 was RMB313.1 million (US$44.3 million),
representing an increase of RMB817.3 million from a gross loss of
RMB504.2 million in the second quarter of 2019 and an increase of
RMB480.6 million from a gross loss of RMB167.5 million in the first
quarter of 2020. The increase of gross profit compared to the
second quarter of 2019 was mainly contributed by increased vehicle
sales, and incurrence of the one-off cost in relation to the
Company’s voluntary battery recall in the second quarter of
2019.
- Gross margin in
the second quarter of 2020 was 8.4%, compared with negative 33.4%
in the second quarter of 2019 and negative 12.2% in the first
quarter of 2020. The increase of gross margin compared to the
second quarter of 2019 was mainly driven by the increase of vehicle
margin in the second quarter of 2020.
- Vehicle margin in
the second quarter of 2020 was 9.7%, compared with negative 24.1%
in the second quarter of 2019 and negative 7.4% in the first
quarter of 2020. The increase of vehicle margin compared to the
second quarter of 2019 and the first quarter of 2020 was mainly
driven by the decrease in purchase price of certain materials and
lower unit manufacturing cost attributed from increased production
volume of the ES6 and the ES8 in the second quarter of 2020.
Besides above, the increase of vehicle margin in the second quarter
of 2020 compared to the second quarter of 2019 was also
attributable to the impact of the one-off cost in relation to the
Company’s voluntary battery recall in the second quarter of
2019.
Operating Expenses
- Research and development
expenses in the second quarter of 2020 were RMB545.2
million (US$77.2 million), representing a decrease of 58.1% from
the second quarter of 2019 and an increase of 4.4% from the first
quarter of 2020. Excluding share-based compensation expenses
(non-GAAP), research and development expenses were RMB533.5 million
(US$75.5 million), representing a decrease of 58.4% from the second
quarter of 2019 and an increase of 3.7% from the first quarter of
2020. The decrease in research and development expenses over the
second quarter of 2019 was primarily attributable to the incurrence
of expenses relating to rigorous testing activities of ES6 in the
second quarter of 2019 before its mass production. Research and
development expenses remained relatively stable compared with the
first quarter of 2020, which mainly consisted of costs incurred for
recurring projects, while mass investment stage has not yet reached
for new projects.
- Selling, general and
administrative expenses in the second quarter of 2020 were
RMB936.8 million (US$132.6 million), representing a decrease of
34.1% from the second quarter of 2019 and an increase of 10.4% from
the first quarter of 2020. Excluding share-based compensation
expenses (non-GAAP), selling, general and administrative expenses
were RMB904.5 million (US$128.0 million), representing a decrease
of 33.1% from the second quarter of 2019 and an increase of 9.7%
from the first quarter of 2020. The decrease in selling, general
and administrative expenses over the second quarter of 2019 was
primarily driven by the Company’s overall cost-saving efforts and
the improved operating efficiency in marketing and other supporting
functions. The increase in selling, general and administrative
expenses over the first quarter of 2020 was primarily attributed to
increased marketing and promotional activities and costs recovered
from the COVID-19 outbreak in the first quarter of 2020.
Loss from Operations
- Loss from
operations was RMB1,160.0 million (US$164.2 million) in
the second quarter of 2020, representing a decrease of 64.0% from
the second quarter of 2019 and a decrease of 26.1% from the first
quarter of 2020. Excluding share-based compensation expenses,
adjusted loss from operations (non-GAAP) was RMB1,114.7 million
(US$157.8 million) in the second quarter of 2020, representing a
decrease of 64.4% from the second quarter of 2019 and a decrease of
27.5% from the first quarter of 2020.
Share-based Compensation
Expenses
- Share-based compensation expenses
in the second quarter of 2020 were RMB45.3 million (US$6.4
million), representing a decrease of 50.9% from the second quarter
of 2019 and an increase of 39.8% from the first quarter of 2020.
The decrease in share-based compensation expenses over the second
quarter of 2019 was primarily due to less options granted driven by
the decline in the number of employees, and the impact of part of
the share-based compensation expenses being recognized by using the
accelerated method, under which the expenses decrease gradually
over the vesting period. The increase in share-based compensation
expenses over the first quarter of 2020 was primarily attributed to
the incremental options granted in the second quarter of 2020.
Net Loss and Earnings Per
Share
- Net
loss was RMB1,176.7 million (US$166.5 million) in the
second quarter of 2020, representing a decrease of 64.2% from the
second quarter of 2019 and a decrease of 30.4% from the first
quarter of 2020. Excluding share-based compensation expenses,
adjusted net loss (non-GAAP) was RMB1,131.4 million (US$160.1
million) in the second quarter of 2020, representing a decrease of
64.6% from the second quarter of 2019 and a decrease of 31.8% from
the first quarter of 2020.
- Net loss attributable to
NIO’s ordinary shareholders was RMB1,207.8 million
(US$171.0 million) in the second quarter of 2020, representing a
decrease of 63.6% from the second quarter of 2019 and a decrease of
29.9% from the first quarter of 2020. Excluding share-based
compensation expenses and accretion on redeemable non-controlling
interests to redemption value, adjusted net loss attributable to
NIO’s ordinary shareholders (non-GAAP) was RMB1,131.0 million
(US$160.1 million).
- Basic and diluted net loss
per ADS were both RMB1.15 (US$0.16) in the second quarter
of 2020. Excluding share-based compensation expenses and accretion
on redeemable non-controlling interests to redemption value,
adjusted basic and diluted net loss per ADS (non-GAAP) were both
RMB1.08 (US$0.15).
Balance Sheets
- Balance of cash and cash
equivalents, restricted cash and short-term investment was
RMB11.2 billion (US$1.6 billion) as of June 30, 2020. The Company
operates with continuous loss and negative equity. The Company’s
continuous operation depends on the successful implementation of
the management's plans which considers the improvements in its
operating cash flows and the consummation of the investments in NIO
China from strategic investors. Based on its evaluation which
considers the progress of the investments in NIO China, the Company
believes that its existing working capital, the funds from the
investments in NIO China and available loan facilities will be
sufficient to support the Company's continuous operations and
developments in the next twelve months.
Business Outlook
For the third quarter of 2020, the Company
expects:
- Deliveries of the
vehicles to be between 11,000 and 11,500 vehicles,
representing an increase of approximately 129.2% to 139.6% from the
same quarter of 2019, and an increase of approximately 6.5% to
11.3% from the second quarter of 2020.
- Total revenues to
be between RMB4,047.5 million (US$572.9 million) and RMB4,212.3
million (US$596.2 million), representing an increase of
approximately 120.4% to 129.3% from the same quarter of 2019, and
an increase of approximately 8.8% to 13.3% from the second quarter
of 2020.
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 August 11, 2020
(8:00 PM Beijing/Hong Kong Time on August 11, 2020) to discuss
financial results and answer questions from investors and analysts.
Listeners may register in advance of the conference using the link
provided below and dial in 10 minutes prior to the call, using
participant dial-in numbers, Direct Event passcode and unique
registrant ID which would be provided upon registering.
http://apac.directeventreg.com/registration/event/8596325
Additionally, a live and archived webcast of the
conference call will be available on the Company’s investor
relations website at http://ir.nio.com.
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 19, 2020 09:59
AM ET:
United States: |
+1-646-254-3697 |
International: |
+61-2-8199-0299 |
Hong Kong: |
+852-3051-2780 |
Conference ID: |
8596325 |
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About NIO Inc.
NIO Inc. is a pioneer in China’s premium smart
electric vehicle market. Founded in November 2014, NIO’s mission is
to shape a joyful lifestyle by offering premium smart electric
vehicles and being the best user enterprise. NIO designs, jointly
manufactures, and sells smart and connected premium electric
vehicles, driving innovations in next generation technologies in
connectivity, autonomous driving and artificial intelligence.
Redefining the user experience, NIO provides users with
comprehensive, convenient and innovative charging solutions and
other user-centric services. NIO began deliveries of the ES8, a
7-seater flagship premium electric SUV in China in June 2018, and
its variant, the 6-seater ES8, in March 2019. NIO officially
launched the ES6, a 5-seater high-performance premium electric SUV,
in December 2018 and began the first deliveries of the ES6 in June
2019. NIO officially launched the EC6, a 5-seater premium smart
electric coupe SUV, in December 2019 and plans to commence
deliveries in 2020.
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. Among other things, quotations from
management in this announcement, as well as NIO’s strategic and
operational plans, contain forward-looking 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 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 grow manufacturing in collaboration with partners; its ability
to provide convenient charging solutions to its customers; its
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 and ES6; 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 RMB7.0651 to US$1.00, the noon buying rate in effect on
June 30, 2020 in the H.10 statistical release of the Federal
Reserve Board. The Company makes no representation that the
Renminbi or U.S. dollars amounts referred could be converted into
U.S. dollars or Renminbi, as the case may be, at any particular
rate or at all.
Statement Regarding Preliminary
Unaudited Financial Information
The unaudited financial information set out in
this earnings release is preliminary and subject to potential
adjustments. Adjustments to the consolidated financial statements
may be identified when audit work has been performed for the
Company’s year-end audit, which could result in significant
differences from this preliminary unaudited financial
information.
For more information, please visit:
http://ir.nio.com.
Contacts:
NIO Inc.Investor RelationsTel:
+86-21-6908-2018Email: ir@nio.com
Source: NIO
NIO INC.
Unaudited Consolidated Balance Sheets
Amounts expressed in
Renminbi (“RMB”), unless otherwise stated |
(in thousands, except for share and per share data) |
|
December 31, 2019 |
|
|
June 30, 2020 |
|
|
June 30, 2020 |
|
|
(audited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
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(US$) |
|
ASSETS |
|
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Current
assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
862,839 |
|
|
10,494,509 |
|
|
1,485,401 |
|
Restricted cash |
82,507 |
|
|
441,413 |
|
|
62,478 |
|
Short-term investment |
111,000 |
|
|
231,590 |
|
|
32,779 |
|
Trade
receivable |
1,352,093 |
|
|
1,377,230 |
|
|
194,934 |
|
Amounts
due from related parties |
50,783 |
|
|
50,635 |
|
|
7,167 |
|
Inventory |
889,528 |
|
|
1,023,986 |
|
|
144,936 |
|
Prepayments and other current assets |
1,579,258 |
|
|
1,469,523 |
|
|
207,997 |
|
Total current assets |
4,928,008 |
|
|
15,088,886 |
|
|
2,135,692 |
|
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
Long-term restricted cash |
44,523 |
|
|
45,084 |
|
|
6,381 |
|
Property, plant and equipment, net |
5,533,064 |
|
|
5,178,352 |
|
|
732,948 |
|
Intangible assets, net |
1,522 |
|
|
1,104 |
|
|
156 |
|
Land use
rights, net |
208,815 |
|
|
206,392 |
|
|
29,213 |
|
Long-term investments |
115,325 |
|
|
155,225 |
|
|
21,971 |
|
Right-of-use assets - operating lease |
1,997,672 |
|
|
1,500,764 |
|
|
212,419 |
|
Other
non-current assets |
1,753,100 |
|
|
974,869 |
|
|
137,984 |
|
Total non-current assets |
9,654,021 |
|
|
8,061,790 |
|
|
1,141,072 |
|
|
|
|
|
|
|
|
|
|
Total assets |
14,582,029 |
|
|
23,150,676 |
|
|
3,276,764 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Short-term borrowings |
885,620 |
|
|
3,955,613 |
|
|
559,881 |
|
Trade
payable |
3,111,699 |
|
|
3,917,525 |
|
|
554,489 |
|
Amounts
due to related parties |
309,729 |
|
|
485,994 |
|
|
68,788 |
|
Taxes
payable |
43,986 |
|
|
76,913 |
|
|
10,886 |
|
Current
portion of operating lease liabilities |
608,747 |
|
|
658,918 |
|
|
93,263 |
|
Current
portion of long-term borrowings |
322,436 |
|
|
420,038 |
|
|
59,453 |
|
Accruals
and other liabilities |
4,216,641 |
|
|
3,534,072 |
|
|
500,215 |
|
Total current
liabilities |
9,498,858 |
|
|
13,049,073 |
|
|
1,846,975 |
|
|
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
Long-term borrowings |
7,154,798 |
|
|
7,052,650 |
|
|
998,238 |
|
Non-current operating lease liabilities |
1,598,372 |
|
|
1,134,327 |
|
|
160,553 |
|
Other
non-current liabilities |
1,151,813 |
|
|
1,391,651 |
|
|
196,975 |
|
Total non-current liabilities |
9,904,983 |
|
|
9,578,628 |
|
|
1,355,766 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
19,403,841 |
|
|
22,627,701 |
|
|
3,202,741 |
|
|
|
|
|
|
|
|
|
|
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, 2019 |
|
|
June 30, 2020 |
|
|
June 30, 2020 |
|
|
(audited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
(US$) |
|
MEZZANINE EQUITY |
|
|
|
|
|
|
|
|
Redeemable non-controlling interests |
1,455,787 |
|
|
6,311,668 |
|
|
893,359 |
|
Total mezzanine equity |
1,455,787 |
|
|
6,311,668 |
|
|
893,359 |
|
SHAREHOLDERS’ DEFICIT |
|
|
|
|
|
|
|
|
Ordinary
shares |
1,827 |
|
|
1,992 |
|
|
282 |
|
Additional paid in capital |
40,227,856 |
|
|
43,726,092 |
|
|
6,189,026 |
|
Accumulated other comprehensive loss |
(203,048 |
) |
|
(306,113 |
) |
|
(43,327 |
) |
Accumulated deficit |
(46,326,321 |
) |
|
(49,216,851 |
) |
|
(6,966,193 |
) |
Total NIO Inc. shareholders’ deficit |
(6,299,686 |
) |
|
(5,794,880 |
) |
|
(820,212 |
) |
Non-controlling interests |
22,087 |
|
|
6,187 |
|
|
876 |
|
Total shareholders’ deficit |
(6,277,599 |
) |
|
(5,788,693 |
) |
|
(819,336 |
) |
Total liabilities, mezzanine equity and shareholders’
deficit |
14,582,029 |
|
|
23,150,676 |
|
|
3,276,764 |
|
|
|
|
|
|
|
|
|
|
NIO INC.
Unaudited Consolidated Statements of Comprehensive
Loss
Amounts expressed in
Renminbi (“RMB”), unless otherwise stated |
(in thousands, except for share and per share data) |
|
Three Months Ended |
|
June 30, 2019 |
|
|
March 31, 2020 |
|
|
June 30, 2020 |
|
|
June 30, 2020 |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
(US$) |
|
Revenues: |
|
|
|
|
Vehicle sales |
1,414,533 |
|
|
1,255,597 |
|
|
3,486,089 |
|
|
493,424 |
|
Other sales |
94,037 |
|
|
116,355 |
|
|
232,841 |
|
|
32,957 |
|
Total revenues |
1,508,570 |
|
|
1,371,952 |
|
|
3,718,930 |
|
|
526,381 |
|
Cost of
sales: |
|
|
|
|
Vehicle sales |
(1,755,017 |
) |
|
(1,348,749 |
) |
|
(3,148,621 |
) |
|
(445,658 |
) |
Other sales |
(257,737 |
) |
|
(190,682 |
) |
|
(257,168 |
) |
|
(36,400 |
) |
Total cost of sales |
(2,012,754 |
) |
|
(1,539,431 |
) |
|
(3,405,789 |
) |
|
(482,058 |
) |
Gross
(loss)/profit |
(504,184 |
) |
|
(167,479 |
) |
|
313,141 |
|
|
44,323 |
|
Operating expenses: |
|
|
|
|
Research and development |
(1,300,531 |
) |
|
(522,359 |
) |
|
(545,185 |
) |
|
(77,166 |
) |
Selling, general and administrative |
(1,421,392 |
) |
|
(848,346 |
) |
|
(936,788 |
) |
|
(132,594 |
) |
Other operating (loss)/income, net |
— |
|
|
(32,084 |
) |
|
8,829 |
|
|
1,250 |
|
Total operating expenses |
(2,721,923 |
) |
|
(1,402,789 |
) |
|
(1,473,144 |
) |
|
(208,510 |
) |
Loss from operations |
(3,226,107 |
) |
|
(1,570,268 |
) |
|
(1,160,003 |
) |
|
(164,187 |
) |
|
|
|
|
|
Interest
income |
46,519 |
|
|
17,649 |
|
|
20,584 |
|
|
2,913 |
|
Interest
expenses |
(96,884 |
) |
|
(110,496 |
) |
|
(112,917 |
) |
|
(15,982 |
) |
Share of
losses of equity investees, net of tax |
(28,214 |
) |
|
(14,015 |
) |
|
(4,408 |
) |
|
(624 |
) |
Other
income/(loss), net |
22,600 |
|
|
(13,204 |
) |
|
82,107 |
|
|
11,621 |
|
Loss before income tax expense |
(3,282,086 |
) |
|
(1,690,334 |
) |
|
(1,174,637 |
) |
|
(166,259 |
) |
Income
tax expense |
(3,679 |
) |
|
(1,474 |
) |
|
(2,017 |
) |
|
(285 |
) |
Net loss |
(3,285,765 |
) |
|
(1,691,808 |
) |
|
(1,176,654 |
) |
|
(166,544 |
) |
Accretion on redeemable non-controlling interests to redemption
value |
(31,561 |
) |
|
(31,561 |
) |
|
(31,561 |
) |
|
(4,467 |
) |
Net loss
attributable to non-controlling interests |
3,670 |
|
|
532 |
|
|
368 |
|
|
52 |
|
|
|
|
|
|
Net loss attributable to ordinary shareholders of NIO
Inc. |
(3,313,656 |
) |
|
(1,722,837 |
) |
|
(1,207,847 |
) |
|
(170,959 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
(3,285,765 |
) |
|
(1,691,808 |
) |
|
(1,176,654 |
) |
|
(166,544 |
) |
Other comprehensive (loss)/income |
|
|
|
|
Foreign
currency translation adjustment, net of nil tax |
(70,139 |
) |
|
(109,542 |
) |
|
6,477 |
|
|
917 |
|
|
|
|
|
|
Total other comprehensive (loss)/income |
(70,139 |
) |
|
(109,542 |
) |
|
6,477 |
|
|
917 |
|
Total comprehensive loss |
(3,355,904 |
) |
|
(1,801,350 |
) |
|
(1,170,177 |
) |
|
(165,627 |
) |
Accretion on redeemable non-controlling interests to redemption
value |
(31,561 |
) |
|
(31,561 |
) |
|
(31,561 |
) |
|
(4,467 |
) |
Net loss
attributable to non-controlling interests |
3,670 |
|
|
532 |
|
|
368 |
|
|
52 |
|
|
|
|
|
|
Comprehensive loss attributable to ordinary shareholders of
NIO Inc. |
(3,383,795 |
) |
|
(1,832,379 |
) |
|
(1,201,370 |
) |
|
(170,042 |
) |
Weighted average number of ordinary shares used in
computing net loss per share |
|
|
|
|
Basic and diluted |
1,026,505,444 |
|
1,037,488,350 |
|
1,054,638,822 |
|
1,054,638,822 |
|
Net loss per share attributable to ordinary
shareholders |
|
|
|
|
Basic
and diluted |
(3.23 |
) |
(1.66 |
) |
(1.15 |
) |
(0.16 |
) |
Weighted average number of ADS used in computing net loss
per share |
|
|
|
|
Basic
and diluted |
1,026,505,444 |
|
1,037,488,350 |
|
1,054,638,822 |
|
1,054,638,822 |
|
Net loss per ADS attributable to ordinary
shareholders |
|
|
|
|
Basic
and diluted |
(3.23 |
) |
(1.66 |
) |
(1.15 |
) |
(0.16 |
) |
|
|
|
|
|
|
|
|
|
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, 2020 |
|
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 |
(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 |
) |
|
|
|
Net loss
per ADS attributable to ordinary shareholders, basic and diluted
(USD) |
(0.16 |
) |
|
|
|
|
0.01 |
|
|
|
|
(0.15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2020 |
|
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 |
(1,539,431 |
) |
|
-112.2 |
% |
|
908 |
|
0.1 |
% |
|
(1,538,523 |
) |
|
-112.1 |
% |
Research and development
expenses |
(522,359 |
) |
|
-38.1 |
% |
|
7,939 |
|
0.6 |
% |
|
(514,420 |
) |
|
-37.5 |
% |
Selling, general and
administrative expenses |
(848,346 |
) |
|
-61.8 |
% |
|
23,520 |
|
1.7 |
% |
|
(824,826 |
) |
|
-60.1 |
% |
Total |
(2,910,136 |
) |
|
-212.1 |
% |
|
32,367 |
|
2.4 |
% |
|
(2,877,769 |
) |
|
-209.7 |
% |
|
|
|
|
|
|
|
|
Loss from operations |
(1,570,268 |
) |
|
-114.5 |
% |
|
32,367 |
|
2.4 |
% |
|
(1,537,901 |
) |
|
-112.1 |
% |
|
|
|
|
|
|
|
|
Net loss |
(1,691,808 |
) |
|
-123.4 |
% |
|
32,367 |
|
2.4 |
% |
|
(1,659,441 |
) |
|
-121.0 |
% |
|
|
|
|
|
|
|
|
Accretion on redeemable
non-controlling interests to redemption value |
(31,561 |
) |
|
-2.3 |
% |
|
31,561 |
|
2.3 |
% |
|
— |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
ordinary shareholders of NIO Inc. |
(1,722,837 |
) |
|
-125.6 |
% |
|
63,928 |
|
4.7 |
% |
|
(1,658,909 |
) |
|
-120.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to ordinary shareholders, basic and diluted (RMB) |
(1.66 |
) |
|
|
|
|
0.06 |
|
|
|
|
(1.60 |
) |
|
|
|
Net loss per ADS attributable
to ordinary shareholders, basic and diluted (RMB) |
(1.66 |
) |
|
|
|
|
0.06 |
|
|
|
|
(1.60 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2019 |
|
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 |
(2,012,754 |
) |
|
-133.4 |
% |
|
3,362 |
|
0.2 |
% |
|
(2,009,392 |
) |
|
-133.2 |
% |
Research and development
expenses |
(1,300,531 |
) |
|
-86.2 |
% |
|
18,784 |
|
1.2 |
% |
|
(1,281,747 |
) |
|
-85.0 |
% |
Selling, general and
administrative expenses |
(1,421,392 |
) |
|
-94.2 |
% |
|
70,064 |
|
4.6 |
% |
|
(1,351,328 |
) |
|
-89.6 |
% |
Total |
(4,734,677 |
) |
|
-313.8 |
% |
|
92,210 |
|
6.0 |
% |
|
(4,642,467 |
) |
|
-307.8 |
% |
|
|
|
|
|
|
|
|
Loss from operations |
(3,226,107 |
) |
|
-213.8 |
% |
|
92,210 |
|
6.0 |
% |
|
(3,133,897 |
) |
|
-207.8 |
% |
|
|
|
|
|
|
|
|
Net loss |
(3,285,765 |
) |
|
-217.8 |
% |
|
92,210 |
|
6.0 |
% |
|
(3,193,555 |
) |
|
-211.8 |
% |
|
|
|
|
|
|
|
|
Accretion on redeemable
non-controlling interests to redemption value |
(31,561 |
) |
|
-2.1 |
% |
|
31,561 |
|
2.1 |
% |
|
— |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
Net loss attributable to ordinary
shareholders of NIO Inc. |
(3,313,656 |
) |
|
-219.7 |
% |
|
123,771 |
|
8.2 |
% |
|
(3,189,885 |
) |
|
-211.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable
to ordinary shareholders, basic and diluted (RMB) |
(3.23 |
) |
|
|
|
|
0.12 |
|
|
|
|
(3.11 |
) |
|
|
|
Net loss per ADS attributable to
ordinary shareholders, basic and diluted (RMB) |
(3.23 |
) |
|
|
|
|
0.12 |
|
|
|
|
(3.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
i All translations from RMB to USD for the Second quarter of
2020 were made at the rate of RMB7.0651 to US$1.00, the noon buying
rate in effect on June 30, 2020 in the H.10 statistical release of
the Federal Reserve Board.
ii Vehicle margin is the margin of vehicle sales, which is
calculated based on revenues and cost of sales derived from 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.
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