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NIO Inc. Reports Unaudited Third Quarter 2024 Financial Results

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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 Q3 2024 Q2 2024 Q1 2023 Q4
Deliveries 61,855 57,373 30,053 50,045
         
  2023 Q3 2023 Q2 2023 Q1 2022 Q4
Deliveries 55,432 23,520 31,041 40,052


Financial Highlights for the Third Quarter of 2024

Key Financial Results for the Third Quarter of 2024
(in RMB million, except for percentage)
    2024 Q3 2024 Q2   2023 Q3   % Changeiii
            QoQ YoY
Vehicle Sales   16,697.6 15,679.6   17,408.9   6.5% -4.1%
Vehicle Margin   13.1% 12.2%   11.0%   90bp 210bp
                 
Total Revenues   18,673.5 17,446.0   19,066.6   7.0% -2.1%
Gross Profit   2,007.4 1,688.7   1,523.3   18.9% 31.8%
Gross Margin   10.7% 9.7%   8.0%   100bp 270bp
                 
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
ir@nio.com
Media Relations
global.press@nio.com

Source: NIO

NIO INC.
Unaudited Condensed Consolidated Balance Sheets
 
(All amounts in thousands)
  As of
  December 31, 2023 September 30, 2024 September 30, 2024  
  RMB RMB US$  
ASSETS        
Current assets:        
Cash and cash equivalents         32,935,111 23,791,903 3,390,319  
Restricted cash         5,542,271 4,920,257 701,131  
Short-term investments         16,810,107 13,358,496 1,903,570  
Trade and notes receivables         4,657,652 1,903,642 271,267  
Amounts due from related parties         1,722,603 5,122,638 729,970  
Inventory         5,277,726 6,818,641 971,649  
Prepayments and other current assets         3,434,763 4,140,854 590,067  
Total current assets         70,380,233 60,056,431 8,557,973  
Non-current assets:        
Long-term restricted cash         144,125 101,216 14,423  
Property, plant and equipment, net.         24,847,004 24,618,039 3,508,042  
Intangible assets, net……………………………………………… 29,648 29,648 4,225  
Land use rights, net         207,299 203,321 28,973  
Long-term investments         5,487,216 3,731,701 531,763  
Right-of-use assets – operating lease         11,404,116 11,890,060 1,694,320  
Other non-current assets         4,883,561 3,358,601 478,597  
Total non-current assets         47,002,969 43,932,586 6,260,343  
Total assets         117,383,202 103,989,017 14,818,316  
LIABILITIES        
Current liabilities:        
Short-term borrowings         5,085,411 6,010,924 856,550  
Trade and notes payable         29,766,134 30,197,021 4,303,041  
Amounts due to related parties, current         561,625 264,508 37,692  
Taxes payable         349,349 558,558 79,594  
Current portion of operating lease liabilities         1,743,156 1,781,617 253,878  
Current portion of long-term borrowings         4,736,087 4,229,267 602,666  
Accruals and other liabilities         15,556,354 14,430,852 2,056,380  
Total current liabilities         57,798,116 57,472,747 8,189,801  
Non-current liabilities:        
Long-term borrowings         13,042,861 11,281,994 1,607,671  
Non-current operating lease liabilities         10,070,057 10,575,748 1,507,032  
Deferred tax liabilities         212,347 210,166 29,948  
Amounts due to related parties, non-current         – 318,481 45,383  
Other non-current liabilities         6,663,805 8,059,286 1,148,439  
Total non-current liabilities         29,989,070 30,445,675 4,338,473  
Total liabilities         87,787,186 87,918,422 12,528,274  
NIO INC.
Unaudited Condensed Consolidated Balance Sheets
 
(All amounts in thousands)
  As of
  December 31, 2023 September 30, 2024 September 30, 2024
  RMB RMB US$
MEZZANINE EQUITY      
Redeemable non-controlling interests 3,860,384 4,552,963 648,792
Total mezzanine equity         3,860,384 4,552,963 648,792
SHAREHOLDERS’ EQUITY      
Total NIO Inc. shareholders’ equity         25,546,233 11,346,837 1,616,912
Non-controlling interests         189,399 170,795 24,338
Total shareholders’ equity         25,735,632 11,517,632 1,641,250
Total liabilities, mezzanine equity and shareholders’ equity         117,383,202 103,989,017 14,818,316
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, 2023 June 30, 2024 September 30, 2024 September 30, 2024
  RMB RMB RMB US$
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)		  
  RMB RMB RMB RMB  
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 ) 647,056 91,400 (4,403,179)  
Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB)         (2.50 ) 0.32 0.04 (2.14)  
Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (USD)         (0.36 ) 0.04 0.01 (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)		  
  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 )  
  Three Months Ended September 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         (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 ) 603,549 77,159 (3,947,921 )
Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB)         (2.67 ) 0.35 0.04 (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.


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