NIO Inc. reports unaudited third quarter 2020 monetary results

NIO Inc. (“NIO” and/or “Company”) (NYSE: NIO), a pioneer in China’s advanced wise electric automobile market, today announced its unaudited financial results for the one-fourth ended September 30, 2020.

Running features for the Third Quarter of 2020

  • Deliveries of cars had been 12,206 inside 3rd one-fourth of 2020, including 8,660 ES6s, 3,530 ES8s and 16 EC6s, weighed against 4,799 cars delivered inside 3rd one-fourth of 2019 and 10,331 cars delivered in second one-fourth of 2020.
Crucial Running Outcomes
2020 Q3 2020 Q2 2020 Q1 2019 Q4
Deliveries 12,206 10,331 3,838 8,224
2019 Q3 2019 Q2 2019 Q1 2018 Q4
Deliveries 4,799 3,553 3,989 7,980

Financial features when it comes to Third Quarter of 2020

  • Vehicle sales were RMB4,266.8 million (US$628.4 million) inside third quarter of 2020, representing a rise of 146.1percent from 3rd quarter of 2019 and a growth of 22.4per cent from second quarter of 2020.
  • Car marginii was 14.5% inside third one-fourth of 2020, compared to unfavorable 6.8percent in 3rd quarter of 2019 and 9.7percent within the second one-fourth of 2020.
  • Complete revenues had been RMB4,526.0 million (US$666.6 million) into the 3rd one-fourth of 2020, representing a rise of 146.4per cent from third quarter of 2019 and a growth of 21.7% from the second one-fourth of 2020.
  • Gross profit ended up being RMB585.8 million (US$86.3 million) in third quarter of 2020, representing a rise of RMB807.4 million from a gross loss of RMB221.6 million in third quarter of 2019 and a rise of RMB272.7 million through the second one-fourth of 2020.
  • Gross margin had been 12.9per cent within the 3rd one-fourth of 2020, compared to negative 12.1percent when you look at the 3rd one-fourth of 2019 and 8.4% in second one-fourth of 2020.
  • Reduction from functions had been RMB946.0 million (US$139.3 million) into the third one-fourth of 2020, representing a loss of 60.7percent through the third quarter of 2019 and a decrease of 18.4per cent from 2nd one-fourth of 2020. Excluding share-based compensation expenses, modified reduction from operations (non-GAAP) had been RMB896.7 million (US$132.1 million) when you look at the 3rd one-fourth of 2020, representing a decrease of 61.7 per cent from the third quarter of 2019 and a decrease of 19.6per cent from the second one-fourth of 2020.
  • Net loss had been RMB1,047.0 million (US$154.2 million) in 3rd quarter of 2020, representing a decrease of 58.5% from the 3rd one-fourth of 2019 and a loss of 11.0per cent through the second one-fourth of 2020. Excluding share-based payment expenditures, adjusted web reduction (non-GAAP) had been RMB997.8 million (US$147.0 million) in the third one-fourth of 2020, representing a decrease of 59.3percent through the 3rd quarter of 2019 and a decrease of 11.8per cent from second one-fourth of 2020.
  • Net loss owing to NIO’s ordinary shareholders was RMB1,187.9 million (US$175.0 million) in the 3rd one-fourth of 2020, representing a loss of 53.5% from the 3rd one-fourth of 2019 and a loss of 1.6% through the second one-fourth of 2020. Excluding share-based payment expenses and accretion on redeemable non-controlling passions to redemption value, adjusted web loss due to NIO’s ordinary shareholders (non-GAAP) had been RMB996.0 million (US$146.7 million).
  • Fundamental and diluted web reduction per American Depositary Share (ADS)iii had been both RMB0.98 (US$0.14) within the third one-fourth of 2020. Excluding share-based compensation expenses and accretion on redeemable non-controlling passions to redemption value, adjusted basic and diluted web reduction per advertisements (non-GAAP) had been both RMB0.82 (US$0.12).
  • Money and cash equivalents, restricted money and temporary financial investment were RMB22.2 billion (US$3.3 billion) by September 30, 2020.
Key Financial Outcomes

(in RMB million, except for per ordinary share data and percentage)

2020 Q3 2020 Q2 2019 Q3 per cent Changeiv
QoQ YoY
Car Sales 4,266.8 3,486.1 1,733.5 22.4% 146.1percent
Car Margin 14.5per cent 9.7per cent -6.8per cent 482bp 2,130bp
Total Revenues 4,526.0 3,718.9 1,836.8 21.7percent 146.4percent
Gross Profit/(Reduction) 585.8 313.1 (221.6) 87.1per cent 364.4%
Gross Margin 12.9percent 8.4per cent -12.1percent 452bp 2,504bp
Loss from functions (946.0) (1,160.0) (2,409.2) -18.4percent -60.7per cent
Adjusted Loss from Operations (non-GAAP) (896.7) (1,114.7) (2,338.8) -19.6per cent -61.7percent
Net Reduction (1,047.0) (1,176.7) (2,521.7) -11.0per cent -58.5%
Adjusted Web Reduction (non-GAAP) (997.8) (1,131.4) (2,451.2) -11.8percent -59.3%
Net Reduction Due To Ordinary Investors (1,187.9) (1,207.8) (2,553.6) -1.6% -53.5per cent
Net Loss per Ordinary Share-Basic and Diluted (0.98) (1.15) (2.48) -14.3percent -60.4%
Adjusted web reduction per Ordinary Share-Basic and Diluted (non-GAAP) (0.82) (1.08) (2.38) -24.1per cent -65.5%

Present Improvements

Deliveries in October 2020

  • Deliveries associated with the ES8, ES6 and EC6 were 5,055 cars in October 2020, representing a stronger 100.1% year-over-year growth. At the time of October 31, 2020, collective deliveries of the ES8, ES6 and EC6 achieved 63,343 automobiles, of which 31,430 were delivered in 2020.

Release of 100kWh Battery Power

  • On November 6, 2020, NIO established the 100kWh battery power with battery update plans. The 100kWh cell-to-pack battery power has actually realized 37% greater energy thickness than the 70kWh battery. Running on the 100kWh electric battery, the NEDC variety of NIO EC6 can are as long as 615 kilometers. The outstanding performance associated with the 100kWh electric battery is underpinned by technological breakthroughs including thermal propagation avoidance design, highly-integrated structure, all-climate thermal management and bi-directional cloud electric battery administration system.

    If people choose to buy an ES8, ES6 or EC6 and subscribe for the 100kWh battery pack under the innovative Battery as a site (the “BaaS”) design, they may be able choose the automobile minus the battery power while paying a monthly subscription cost of RMB1,480. People of the 70kWh battery power can decide to either acquisition a 100kWh battery pack for permanent upgrades or pay a monthly membership charge of RMB880 for a flexible upgrade bundle.

Completion of Registered Follow-on Offering of American Depositary Shares

  • In September 2020, NIO completed the providing of 101,775,000 US depositary stocks, each representing one-class A ordinary share of business, at a high price of US$17.00 per advertisements, including 13,275,000 United states depositary stocks released regarding the the underwriters’ complete workout of the overallotment alternative.

Completion of Increase of Controlling Equity passions in NIO Asia

  • In September 2020, NIO finished the increase of the managing equity interests in NIO Asia through the partial redemption of specific investor’s equity passions plus the membership for recently increased registered money. The Company presently keeps 86.5% controlling equity interests in NIO Holding Co., Ltd. (formerly called NIO (Anhui) Holding Co., Ltd.) (“NIO Holding”), the legal entity of NIO China.

Conclusion of Redemption of Equity passions in XPT from Minority Shareholders

  • In November, NIO, through its completely possessed subsidiary, finished the full redemption of equity interests in XPT (Jiangsu) Automotive Technology Co., Ltd., or XPT, held by all of its minority shareholders. Because of this, NIO redeemed an overall total of 21.09% equity interests in XPT and now indirectly wholly owns XPT. Created in might 2018, XPT primarily designs, develops and manufactures electric engines, battery pack packages as well as other smart electric car components.

CEO and CFO Feedback

“We reached an innovative new record-high quarterly deliveries of 12,206 ES8s, ES6s and EC6s altogether when you look at the third one-fourth of 2020, followed closely by the best-ever monthly deliveries of 5,055 vehicles in October,” stated William Bin Li, creator, president and chief executive officer of NIO. “because associated with growing marketplace interest in our competitive items, our company is inspired to continuously elevate manufacturing ability to next amount. We expect to deliver 16,500 to 17,000 automobiles in the coming fourth one-fourth.”

“In the past months, we’re happy to have established the BaaS while the 100kWh battery power with proprietary thermal administration and considerable overall performance enhancement. Allowed by our special battery swap technologies, revolutionary BaaS design and comprehensive energy solutions, our people will benefit from reduced preliminary buy prices of automobiles, versatile battery update options also enhanced guarantee of electric battery overall performance. Additionally, following release of the NIO OS 2.7.0 via firmware-over-the-air (FOTA) update in October 2020, our people have-been capable benefit from the Navigate on Pilot (NoP) feature of NIO Pilot on highways and metropolitan expressways in Asia. Moving forward, we remain dedicated to deploying more sources to the core technology innovations and delivering ideal holistic item and solution experiences to the user community inside pursuit of fortifying our long-lasting competitiveness shopping,” determined Mr. Li.

“With another quarter of record high deliveries when you look at the 3rd one-fourth of 2020, plus further improvements in average selling price, material expense and manufacturing effectiveness, our automobile margin risen up to 14.5%. Additionally, we attained positive cash flow from running tasks the second sequential one-fourth,” included Steven Wei Feng, NIO’s primary monetary officer. “Our order growth energy proceeded steadfastly, driven because of the broadened brand understanding, growing user base, extended sales system and a lot of importantly, the powerful products and technologies. At The Same Time, our constant improvement of functional performance, cash flow and stability sheet has laid a good basis for our future sustainable development and definitive investments in technologies.”

Financial Results for the Third Quarter of 2020

Revenues

  • Total revenues were RMB4,526.0 million (US$666.6 million) within the 3rd quarter of 2020, representing an increase of 146.4% from the third one-fourth of 2019 and a rise of 21.7percent from second one-fourth of 2020.
  • Vehicle sales had been RMB4,266.8 million (US$628.4 million) when you look at the third quarter of 2020, representing a growth of 146.1% from 3rd quarter of 2019 and a rise of 22.4percent from the second one-fourth of 2020. The rise in automobile sales regarding the third quarter of 2020, when compared to third quarter of 2019 and also the 2nd one-fourth of 2020, had been primarily added by the boost in product sales of ES6 and ES8.
  • Various other sales were RMB259.2 million (US$38.2 million) within the third one-fourth of 2020, representing a growth of 150.7percent from 3rd one-fourth of 2019 and a growth of 11.3per cent from second quarter of 2020. The rise various other product sales of the third one-fourth of 2020, compared to the third quarter of 2019, had been mainly attributed to increased incomes produced from your home chargers installed, service bundle and power package subscribed, and accessories sold, that have been based on the enhanced vehicle sales into the 3rd one-fourth of 2020.

Price of Product Sales and Gross Margin

  • Cost of sales had been RMB3,940.1 million (US$580.3 million) within the 3rd one-fourth of 2020, representing a growth of 91.4% from the 3rd one-fourth of 2019 and a growth of 15.7per cent from second quarter of 2020. The rise in expense of product sales, set alongside the third one-fourth of 2019, had been mainly driven by the boost of delivery volume of the ES6 and ES8 inside third quarter of 2020.
  • Gross profit had been RMB585.8 million (US$86.3 million) inside third one-fourth of 2020, representing a growth of RMB807.4 million from a gross reduced RMB221.6 million when you look at the third one-fourth of 2019 and a rise of RMB272.7 million from the 2nd one-fourth of 2020. The increase of gross profit, compared to the third one-fourth of 2019, was primarily contributed by increased car sales and increased vehicle margin.
  • Gross margin into the 3rd quarter of 2020 was 12.9percent, in contrast to negative 12.1per cent into the third one-fourth of 2019 and 8.4% in the 2nd one-fourth of 2020. The increase of gross margin, compared to the 3rd one-fourth of 2019, was primarily driven by the enhance of car margin in 3rd one-fourth of 2020.
  • Vehicle margin in the 3rd quarter of 2020 ended up being 14.5%, compared to negative 6.8% into the third one-fourth of 2019 and 9.7per cent inside 2nd quarter of 2020. The increase of car margin, when compared to 3rd quarter of 2019 plus the second quarter of 2020, ended up being primarily driven because of the decrease in price of specific products and reduced unit production cost attributed from enhanced manufacturing volume of the ES6 and ES8 inside third quarter of 2020.

Operating Expenses

  • Research and development expenses had been RMB590.8 million (US$87.0 million) inside 3rd one-fourth of 2020, representing a decrease of 42.3per cent through the third one-fourth of 2019 and an increase of 8.4% from second one-fourth of 2020. Excluding share-based settlement expenditures (non-GAAP), study and development expenditures were RMB577.8 million (US$85.1 million) in 3rd one-fourth of 2020, representing a decrease of 42.4percent through the third one-fourth of 2019 and a rise of 8.3percent through the second one-fourth of 2020. The reduction in analysis and development expenditures over the third quarter of 2019 was primarily attributed to the greater design and development costs incurred when you look at the 3rd one-fourth of 2019 for EC6 and all-new ES8 launched when you look at the fourth one-fourth of 2019, plus the Company’s overall cost-saving attempts therefore the improved working efficiency in research and development features considering that the 4th quarter of 2019. Research and development costs remained relatively stable compared with the 2nd quarter of 2020, which primarily contains costs sustained for recurring projects.
  • Selling, general and administrative expenses were RMB940.3 million (US$138.5 million) in the third quarter of 2020, representing a decrease of 19.2% from the third quarter of 2019 and an increase of 0.4% from the second quarter of 2020. Excluding share-based payment expenses (non-GAAP), selling, basic and administrative expenditures had been RMB905.5 million (US$133.4 million) when you look at the third one-fourth of 2020, representing a decrease of 18.9% through the third quarter of 2019 and a rise of 0.1% from the second quarter of 2020. The decrease in attempting to sell, basic and administrative expenditures throughout the 3rd quarter of 2019 was mainly driven because of the Company’s general cost-saving attempts in addition to enhanced operational performance in marketing and other promoting features. Selling, general and administrative costs remained relatively stable compared to the second one-fourth of 2020.

Reduction from Operations

  • Reduction from operations was RMB946.0 million (US$139.3 million) within the 3rd one-fourth of 2020, representing a loss of 60.7% through the third one-fourth of 2019 and a decrease of 18.4percent from the 2nd one-fourth of 2020. Excluding share-based payment expenditures, adjusted loss from operations (non-GAAP) ended up being RMB896.7 million (US$132.1 million) in the 3rd quarter of 2020, representing a decrease of 61.7per cent from third quarter of 2019 and a decrease of 19.6% through the second one-fourth of 2020.

Share-based payment costs

  • Share-based payment costs had been RMB49.2 million (US$7.3 million) within the 3rd one-fourth of 2020, representing a loss of 30.1per cent from 3rd one-fourth of 2019 and an increase of 8.6per cent through the 2nd quarter of 2020. The decrease in share-based payment costs throughout the 3rd one-fourth of 2019 ended up being primarily considering less options provided driven by the drop within the quantity of employees, plus the effect of an element of the share-based settlement costs being acknowledged by making use of the accelerated method, under that the expenditures reduce gradually over the vesting period. The rise in share-based payment costs within the second one-fourth of 2020 ended up being mostly attributed to the incremental options issued in the 3rd one-fourth of 2020 with relatively higher give time fair values as a result of enhanced share price.

Web Reduction and Earnings Per Share

  • Net loss had been RMB1,047.0 million (US$154.2 million) within the third one-fourth of 2020, representing a decrease of 58.5percent from the third quarter of 2019 and a loss of 11.0per cent through the second one-fourth of 2020. Excluding share-based compensation expenses, modified net loss (non-GAAP) was RMB997.8 million (US$147.0 million) when you look at the third quarter of 2020, representing a decrease of 59.3percent from the 3rd quarter of 2019 and a decrease of 11.8% through the second one-fourth of 2020.
  • Web loss owing to NIO’s ordinary shareholders ended up being RMB1,187.9 million (US$175.0 million) in 3rd quarter of 2020, representing a loss of 53.5% from 3rd one-fourth of 2019 and a loss of 1.6% through the second one-fourth of 2020. Excluding share-based settlement costs and accretion on redeemable non-controlling passions to redemption value, modified web loss owing to NIO’s ordinary investors (non-GAAP) ended up being RMB996.0 million (US$146.7 million).
  • Basic and diluted net loss per ADS had been both RMB0.98 (US$0.14) in the 3rd one-fourth of 2020. Excluding share-based settlement expenditures and accretion on redeemable non-controlling passions to redemption value, adjusted basic and diluted net loss per advertisements (non-GAAP) were both RMB0.82 (US$0.12).

Balance Sheets

  • Balance of cash and cash equivalents, restricted cash and short-term investment was RMB22.2 billion (US$3.3 billion) as of September 30, 2020.
  • In third one-fourth of 2020, particular convertible records had been exercised by their particular holders utilizing the aggregate quantity of RMB3.1 billion (US$460.9 million).

Business Outlook

For the fourth one-fourth of 2020, the organization needs:

  • Deliveries associated with the automobiles is between 16,500 and 17,000 vehicles, representing a rise of approximately 100.6percent to 106.7percent from same quarter of 2019, and a rise of approximately 35.2percent to 39.3per cent from 3rd quarter of 2020.
  • Total profits becoming between RMB6,258.7 million (US$921.8 million) and RMB6,435.8 million (US$947.9 million), representing a rise of around 119.7percent to 126.0per cent from the same one-fourth of 2019, and an increase of around 38.3percent to 42.2percent from the 3rd one-fourth of 2020.

This business perspective reflects the Company’s present and preliminary view on the business situation and market problem, that will be subject to change.

Conference Call

The Company’s management will host an earnings conference telephone call at 7:00 PM U.S. Eastern Time on November 17, 2020 (8:00 was Beijing/Hong Kong Time on November 18, 2020) to discuss economic outcomes and respond to questions from people and experts. Audience may register prior to the seminar with the link supplied below and dial in ten full minutes before the telephone call, utilizing participant dial-in figures, Direct celebration passcode and unique registrant ID which may be provided upon registering.

http://apac.directeventreg.com/registration/event/5329138

Furthermore, a live and archived webcast of this summit telephone call is available on the Company’s buyer relations internet site at http://ir.nio.com.

A replay of this seminar call will soon be accessible by phone about two hours after the summary regarding the real time telephone call on following numbers, until November 25, 2020 07:59 AM ET:

US: +1-646-254-3697
Global: +61-2-8199-0299
Hong-kong, Asia: +852-3051-2780
Mainland China: +86-400-632-2162
Meeting ID: 5329138

SOURCE: Nio

Latest posts