NIO reports mixed first quarter 2023 financial results

NIO
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SHANGHAI, 11 June 2023: NIO Inc (NYSE: NIO; HKEX: 9866; SGX: NIO), a pioneer and a leading company in the premium smart electric vehicle market, announced its unaudited financial results for the first quarter ended March 31, 2023.

  • Vehicle deliveries: NIO delivered 31,041 vehicles in the first quarter of 2023, ranking first in the premium battery electric vehicle market priced over USD 56,112 (RMB 400,000) in China for 12 consecutive quarters.
  • Revenues: Total revenues in the first quarter of 2023 were USD 1.55bn (RMB 10,676.5m), representing an increase of 7.7% from the first quarter of 2022 and a decrease of 33.5% from the fourth quarter of 2022.
  • Gross profit: Gross profit was USD 23.6m (RMB 162.3m) in the first quarter of 2023, representing a decrease of 88.8% from the first quarter of 2022 and a decrease of 73.9% from the fourth quarter of 2022.
  • Gross margin: Gross margin was 1.5% in the first quarter of 2023, compared with 14.6% in the first quarter of 2022 and 3.9% in the fourth quarter of 2022.
  • Net loss: Net loss was USD 690.1m (RMB 4,739.5m) in the first quarter of 2023, representing an increase of 165.9% from the first quarter of 2022 and a decrease of 18.1% from the fourth quarter of 2022.

NIO attributed the decrease in gross margin to a number of factors, including:

  • A decrease in average selling price as a result of higher proportion of ET5 and 75 kWh standard-range battery pack deliveries.
  • Increased costs associated with the sales of accessories, provision of repair and maintenance services, sales of used cars and provision of power solutions.
  • Decreased revenue from rendering of research and development services.
nio-pilot-ec6
nio-pilot-ec6

Despite the decrease in gross margin, NIO’s CEO, William Bin Li, expressed confidence in the company’s future. He said that NIO is well-positioned for continued growth, thanks to the launch of its new models, including the All-New ES6, and its strong brand reputation.

Li also said that NIO is committed to improving its operating efficiency and reducing costs. He said that the company is taking a number of steps to achieve this goal, including optimizing its supply chain, improving its manufacturing processes, and reducing its marketing expenses.

Operating Expenses

  • Research and development expenses: Research and development expenses in the first quarter of 2023 were USD 447.8m (RMB 3,075.6 million), representing an increase of 74.6% from the first quarter of 2022 and a decrease of 22.7% from the fourth quarter of 2022.
  • Selling, general and administrative expenses: Selling, general and administrative expenses in the first quarter of 2023 were USD 356.2m (RMB 2,445.9m), representing an increase of 21.4% from the first quarter of 2022 and a decrease of 30.7% from the fourth quarter of 2022.

Business Outlook

For the second quarter of 2023, NIO expects:

  • Deliveries of vehicles: Between 23,000 and 25,000 vehicles, representing a decrease of approximately 8.2% to 0.2% from the same quarter of 2022.
  • Total revenues: Between USD 1.27bn (RMB 8,742 million) and USD 1.36bn (RMB 9,370m), representing a decrease of approximately 15.1% to 9.0% from the same quarter of 2022.

Overall, NIO’s first quarter financial results were mixed. The company delivered strong vehicle sales, but its gross margin and net loss were both down. However, NIO’s CEO expressed confidence in the company’s future, and said that he expects NIO to continue to grow in the coming quarters.

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