Nio Inc. (“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
- Vehicle deliveries were 57,373 in the second quarter of 2024, consisting of 32,562 premium smart electric SUVs and 24,811 premium smart electric sedans, representing an increase of 143.9% from the second quarter of 2023, and an increase of 90.9% from the first quarter of 2024.
| Key Operating Results | ||||
| 2024 Q2 | 2024 Q1 | 2023 Q4 | 2023 Q3 | |
| Deliveries | 57,373 | 30,053 | 50,045 | 55,432 |
| 2023 Q2 | 2023 Q1 | 2022 Q4 | 2022 Q3 | |
| Deliveries | 23,520 | 31,041 | 40,052 | 31,607 |
Financial highlights for the second quarter of 2024
- Vehicle sales were RMB15,679.6 million (US$2,157.6 million) in the second quarter of 2024, representing an increase of 118.2% from the second quarter of 2023 and an increase of 87.1% from the first quarter of 2024.
- Vehicle marginii was 12.2% in the second quarter of 2024, compared with 6.2% in the second quarter of 2023 and 9.2% in the first quarter of 2024.
- Total revenues were RMB17,446.0 million (US$2,400.6 million) in the second quarter of 2024, representing an increase of 98.9% from the second quarter of 2023 and an increase of 76.1% from the first quarter of 2024.
- Gross profit was RMB1,688.7 million (US$232.4 million) in the second quarter of 2024, representing an increase of 1,841.0% from the second quarter of 2023 and an increase of 246.3% from the first quarter of 2024.
- Gross margin was 9.7% in the second quarter of 2024, compared with 1.0% in the second quarter of 2023 and 4.9% in the first quarter of 2024.
- Loss from operations was RMB5,209.3 million (US$716.8 million) in the second quarter of 2024, representing a decrease of 14.2% from the second quarter of 2023 and a decrease of 3.4% from the first quarter of 2024. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB4,698.5 million (US$646.5 million) in the second quarter of 2024, representing a decrease of 14.0% from the second quarter of 2023 and a decrease of 8.1% from the first quarter of 2024.
- Net loss was RMB5,046.0 million (US$694.4 million) in the second quarter of 2024, representing a decrease of 16.7% from the second quarter of 2023 and a decrease of 2.7% from the first quarter of 2024. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB4,535.2 million (US$624.1 million) in the second quarter of 2024, representing a decrease of 16.7% from the second quarter of 2023 and a decrease of 7.5% from the first quarter of 2024.
- Cash and cash equivalents, restricted cash, short-term investment and long-term time deposits were RMB41.6 billion (US$5.7 billion) as of June 30, 2024.
Key Financial Results for the Second Quarter of 2024
| (in RMB million, except for percentage) | ||||||||||||
| 2024 Q2 | 2024 Q1 | 2023 Q2 | % Changeiii | |||||||||
| QoQ | YoY | |||||||||||
| Vehicle Sales | 15,679.6 | 8,381.3 | 7,185.2 | 87.1% | 118.2% | |||||||
| Vehicle Margin | 12.2% | 9.2% | 6.2% | 300bp | 600bp | |||||||
| Total Revenues | 17,446.0 | 9,908.6 | 8,771.7 | 76.1% | 98.9% | |||||||
| Gross Profit | 1,688.7 | 487.7 | 87.0 | 246.3% | 1,841.0% | |||||||
| Gross Margin | 9.7% | 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
- Nio delivered 20,498 and 20,176 vehicles in July and August 2024, respectively. As of August 31, 2024, cumulative deliveries of Nio vehicles reached 577,694.
Power Up Counties Plan
- On August 20, 2024, Nio announced its “Power Up Counties” plan to strengthen its charging and swapping network across all county-level administrative divisions in China, providing a more convenient and efficient power solution for NIO, ONVO and all the EV users.
Share Issuance for Share Incentive Plans
- On July 12, 2024, Nio issued 30,000,000 Class A ordinary shares to Deutsche Bank Trust Company Americas, the depositary of the Company’s ADS program, to facilitate future exercise of options and other share incentive awards under the share incentive plans of the Company.
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
- Total revenues in the second quarter of 2024 were RMB17,446.0 million (US$2,400.6 million), representing an increase of 98.9% from the second quarter of 2023 and an increase of 76.1% from the first quarter of 2024.
- Vehicle sales in the second quarter of 2024 were RMB15,679.6 million (US$2,157.6 million), representing an increase of 118.2% from the second quarter of 2023 and an increase of 87.1% from the first quarter of 2024. The increase in vehicle sales over the second quarter of 2023 was mainly due to the increase in delivery volume, partially offset by the lower average selling price as a result of changes in product mix and user rights adjustments since June 2023. The increase in vehicle sales over the first quarter of 2024 was mainly attributable to an increase in delivery volume.
- Other sales in the second quarter of 2024 were RMB1,766.3 million (US$243.1 million), representing an increase of 11.3% from the second quarter of 2023 and an increase of 15.6% from the first quarter of 2024. The increase in other sales over the second quarter of 2023 was mainly due to the increase in sales of parts, accessories and after-sales vehicle services, and provision of power solutions, as a result of the continued growth in the number of users, and partially offset by a decrease in revenue from sales of used cars. The increase in other sales over the first quarter of 2024 was mainly due to (i) the increase in sales of parts, accessories and after-sales vehicle services, provision of power solutions and other products, as a result of the increased sales of embedded products and services offered together with vehicle sales, and continued growth in the number of users; and (ii) the increase in sales from rendering of technical research and development services.
Cost of sales and gross margin
- Cost of sales in the second quarter of 2024 was RMB15,757.3 million (US$2,168.3 million), representing an increase of 81.4% from the second quarter of 2023 and an increase of 67.3% from the first quarter of 2024. The increase in cost of sales over the second quarter of 2023 was mainly attributable to an increase in delivery volume, and partially offset by the decreased material cost per vehicle. The increase in cost of sales over the first quarter of 2024 was mainly attributable to an increase in delivery volume.
- Gross profit in the second quarter of 2024 was RMB1,688.7 million (US$232.4 million), representing an increase of 1,841.0% from the second quarter of 2023 and an increase of 246.3% from the first quarter of 2024.
- Gross margin in the second quarter of 2024 was 9.7%, compared with 1.0% in the second quarter of 2023 and 4.9% in the first quarter of 2024. The increase of gross margin over the second quarter of 2023 and the first quarter of 2024 was mainly attributable to the increased vehicle margin.
- Vehicle margin in the second quarter of 2024 was 12.2%, compared with 6.2% in the second quarter of 2023 and 9.2% in the first quarter of 2024. The increase in vehicle margin from the second quarter of 2023 was mainly attributable to decreased material cost per unit, and partially offset by lower average selling price as a result of the user rights adjustments since June 2023. The increase in vehicle margin from the first quarter of 2024 was mainly due to the decreased material cost per unit.
Operating expenses
- Research and development expenses in the second quarter of 2024 were RMB3,218.5 million (US$442.9 million), representing a decrease of 3.8% from the second quarter of 2023 and an increase of 12.4% from the first quarter of 2024. Excluding share-based compensation expenses, research and development expenses (non-GAAP) were RMB2,888.4 million (US$397.5 million), representing a decrease of 1.9% from the second quarter of 2023 and an increase of 8.7% from the first quarter of 2024. Research and development expenses remained relatively stable compared with the second quarter of 2023. The increase in research and development expenses over the first quarter of 2024 was mainly due to the incremental design and development costs for new products and technologies as well as the increased personnel costs in research and development functions.
- Selling, general and administrative expenses in the second quarter of 2024 were RMB3,757.5 million (US$517.0 million), representing an increase of 31.5% from the second quarter of 2023 and an increase of 25.4% from the first quarter of 2024. Excluding share-based compensation expenses, selling, general and administrative expenses (non-GAAP) were RMB3,595.5 million (US$494.8 million), representing an increase of 34.6% from the second quarter of 2023 and an increase of 22.7% from the first quarter of 2024. The increase in selling, general and administrative expenses over the second quarter of 2023 and the first quarter of 2024 was mainly attributable to (i) the increase in personnel costs related to sales functions, and (ii) the increase in sales and marketing activities.
Loss from operations
- Loss from operations in the second quarter of 2024 was RMB5,209.3 million (US$716.8 million), representing a decrease of 14.2% from the second quarter of 2023 and a decrease of 3.4% from the first quarter of 2024. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB4,698.5 million (US$646.5 million) in the second quarter of 2024, representing a decrease of 14.0% from the second quarter of 2023 and a decrease of 8.1% from first quarter of 2024.
Net loss and earnings per share/ADS
- Net loss in the second quarter of 2024 was RMB5,046.0 million (US$694.4 million), representing a decrease of 16.7% from the second quarter of 2023 and a decrease of 2.7% from the first quarter of 2024. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB4,535.2 million (US$624.1 million) in the second quarter of 2024, representing a decrease of 16.7% from the second quarter of 2023 and a decrease of 7.5% from the first quarter of 2024.
- Net loss attributable to Nio’s ordinary shareholders in the second quarter of 2024 was RMB5,126.4 million (US$705.4 million), representing a decrease of 16.3% from the second quarter of 2023 and a decrease of 2.5% from the first quarter of 2024. 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 RMB4,532.6 million (US$623.7 million) in the second quarter of 2024.
- Basic and diluted net loss per ordinary share/ADS in the second quarter of 2024 were both RMB2.50 (US$0.34), compared with RMB3.70 in the second quarter of 2023 and RMB2.57 in the first quarter of 2024. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted basic and diluted net loss per share/ADS (non-GAAP) were both RMB2.21 (US$0.30), compared with RMB3.28 in the second quarter of 2023 and RMB2.39 in the first quarter of 2024.
Balance Sheet
- Balance of cash and cash equivalents, restricted cash, short-term investment and long-term time deposits was RMB41.6 billion (US$5.7 billion) as of June 30, 2024.
Business outlook
For the third quarter of 2024, the Company expects:
- Deliveries of vehicles to be between 61,000 and 63,000 units, representing an increase of approximately 10.0% to 13.7% from the same quarter of 2023.
- Total revenues to be between RMB19,109 million (US$2,630 million) and RMB19,669 million (US$2,707 million), representing an increase of approximately 0.2% to 3.2% from the same quarter of 2023.
This business outlook reflects the Company’s current and preliminary view on the business situation and market condition, which is subject to change.
SOURCE: Nio
