NIO Inc. Reports Unaudited Second Quarter 2022 Financial

Quarterly Total Revenues reached RMB10,292.4 million (US$1,536.6 million)ⁱ
Quarterly Deliveries of the ES8, the ES6, the EC6 and the ET7 had been 25,059 autos

SHANGHAI, China, Sept. 07, 2022 (GLOBE NEWSWIRE) — NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) (“NIO” or the “Company”), a pioneer and a number one firm within the premium good electrical car market, right now introduced its unaudited monetary outcomes for the second quarter ended June 30, 2022.

Operating Highlights for the Second Quarter of 2022

• Deliveries of autos had been 25,059 within the second quarter of 2022, together with 3,681 ES8s, 9,914 ES6s, 4,715 EC6s and 6,749 ET7s, representing a rise of 14.4% from the second quarter of 2021 and a lower of two.8% from the primary quarter of 2022.

Financial Highlights for the Second Quarter of 2022

• Vehicle gross sales had been RMB9,570.8 million (US$1,428.9 million) within the second quarter of 2022, representing a rise of 21.0% from the second quarter of 2021 and a rise of three.5% from the primary quarter of 2022.
• Vehicle marginⁱⁱ was 16.7% within the second quarter of 2022, in contrast with 20.3% within the second quarter of 2021 and 18.1% within the first quarter of 2022.
• Total revenues had been RMB10,292.4 million (US$1,536.6 million) within the second quarter of 2022, representing a rise of 21.8% from the second quarter of 2021 and a rise of three.9% from the primary quarter of 2022.
• Gross revenue was RMB1,340.3 million (US$200.1 million) within the second quarter of 2022, representing a lower of 14.8% from the second quarter of 2021 and a lower of seven.4% from the primary quarter of 2022.
• Gross margin was 13.0% within the second quarter of 2022, in contrast with 18.6% within the second quarter of 2021 and 14.6% within the first quarter of 2022.
• Loss from operations was RMB2,845.6 million (US$424.8 million) within the second quarter of 2022, representing a rise of 272.8% from the second quarter of 2021 and a rise of 30.0% from the primary quarter of 2022. Excluding share-based compensation bills, adjusted loss from operations (non-GAAP) was RMB2,355.1 million (US$351.6 million) within the second quarter of 2022, representing a rise of 360.1% from the second quarter of 2021 and a rise of 37.3% from the primary quarter of 2022.
• Net loss was RMB2,757.5 million (US$411.7 million) within the second quarter of 2022, representing a rise of 369.6% from the second quarter of 2021 and a rise of 54.7% from the primary quarter of 2022. Excluding share-based compensation bills, adjusted web loss (non-GAAP) was RMB2,267.0 million (US$338.5 million) within the second quarter of 2022, representing a rise of 575.1% from the second quarter of 2021 and a rise of 73.1% from the primary quarter of 2022.
• Net loss attributable to NIO’s odd shareholders was RMB2,745.0 million (US$409.8 million) within the second quarter of 2022, representing a rise of 316.4% from the second quarter of 2021 and a rise of fifty.4% from the primary quarter of 2022. Excluding share-based compensation bills and accretion on redeemable non-controlling pursuits to redemption worth, adjusted web loss attributable to NIO’s odd shareholders (non-GAAP) was RMB2,185.6 million (US$326.3 million) within the second quarter of 2022, representing a rise of 551.1% from the second quarter of 2021 and a rise of 70.1% from the primary quarter of 2022.
• Basic and diluted web loss per Ordinary Share/American Depositary Share (ADS)ⁱⁱⁱ had been each RMB1.68 (US$0.25) within the second quarter of 2022, in contrast with RMB0.42 within the second quarter of 2021 and RMB1.12 within the first quarter of 2022. Excluding share-based compensation bills and accretion on redeemable non-controlling pursuits to redemption worth, adjusted primary and diluted web loss per ADS (non-GAAP) had been each RMB1.34 (US$0.20), in contrast with RMB0.21 within the second quarter of 2021 and RMB0.79 within the first quarter of 2022.
• Cash and money equivalents, restricted money and short-term funding had been RMB54.4 billion (US$8.1 billion) as of June 30, 2022.

Recent Developments

Deliveries in July and August 2022

• NIO delivered 10,052 autos in July 2022 and 10,677 autos in August 2022. As of August 31, 2022, cumulative deliveries of the ES8, ES6, EC6, and ET7 reached 238,626 autos.
• In August, the manufacturing and supply began to ramp up steadily for the ES7, a mid-large five-seater premium good electrical SUV primarily based on NIO Technology 2.0 (NT2).

CEO and CFO Comments

“We delivered 25,059 vehicles in the second quarter of 2022, representing a growth of 14.4% year-over-year despite the COVID-19 related challenges. With the teams’ concerted efforts, our deliveries started to recover and achieved 10,052 and 10,677 units in July and August, respectively,” stated William Bin Li, founder, chairman and chief government officer of NIO.

“The second half of 2022 is a critical period for NIO to scale up the production and delivery of multiple new products. The ES7, our first mid-large five-seater smart electric SUV based on NIO Technology 2.0 (NT2.0), has become a new favorite of the market with its superior performance, comfort and digital experience. We witnessed a robust order inflow for the ES7 and started its deliveries at scale in August. We also look forward to starting the mass production and delivery of the ET5 in late September. With the compelling product portfolio and well-established brand awareness, NIO will attract a broader user base and embrace robust growth in the coming quarters,” concluded Mr. Li.

“We achieved solid financial results for the second quarter of 2022 in spite of the tremendous challenges and cost volatilities,” added Steven Wei Feng, chief monetary officer of NIO. “With the ET7 setting sail to Europe in August, users in more countries will experience our new products and services later this year. To meet the growing EV demand of the global market, we have been working closely with our partners to ramp up the production and deliveries of our new products. We also expect to further expand our market share in the global premium smart electric vehicle market with high operating efficiency. “

Financial Results for the Second Quarter of 2022

Revenues

• Total revenues within the second quarter of 2022 had been RMB10,292.4 million (US$1,536.6 million), representing a rise of 21.8% from the second quarter of 2021 and a rise of three.9% from the primary quarter of 2022.
• Vehicle gross sales within the second quarter of 2022 had been RMB9,570.8 million (US$1,428.9 million), representing a rise of 21.0% from the second quarter of 2021 and a rise of three.5% from the primary quarter of 2022. The improve in car gross sales over the second quarter of 2021 was primarily attributed to increased deliveries. The improve in car gross sales over the primary quarter of 2022 was primarily pushed by increased common promoting value.
• Other gross sales within the second quarter of 2022 had been RMB721.5 million (US$107.7 million), representing a rise of 34.6% from the second quarter of 2021 and a rise of 8.2% from the primary quarter of 2022. The improve in different gross sales over the second quarter of 2021 was primarily attributed to the elevated income derived from auto financing providers, gross sales of service and vitality packages, and gross sales of used automobile. The improve in different gross sales over the primary quarter of 2022 was primarily attributed to the elevated income derived from gross sales of used automobile and auto financing providers.

Cost of Sales and Gross Margin

• Cost of gross sales within the second quarter of 2022 was RMB8,952.1 million (US$1,336.5 million), representing a rise of 30.2% from the second quarter of 2021 and a rise of 5.8% from the primary quarter of 2022. The improve in price of gross sales over the second quarter of 2021 was primarily pushed by the rise of supply quantity and better materials price per car within the second quarter of 2022. The improve in price of gross sales over the primary quarter of 2022 was attributed to the upper materials price per car.
• Gross Profit within the second quarter of 2022 was RMB1,340.3 million (US$200.1 million), representing a lower of 14.8% from the second quarter of 2021 and a lower of seven.4% from the primary quarter of 2022.
• Gross margin within the second quarter of 2022 was 13.0%, in contrast with 18.6% within the second quarter of 2021 and 14.6% within the first quarter of 2022. The lower of gross margin over the second quarter of 2021 was attributed to the lower of car margin and the discount in different gross sales margin ensuing from the expanded funding in energy and repair community. The lower of gross margin over the primary quarter of 2022 was primarily attributed to the lower of car margin.
• Vehicle margin within the second quarter of 2022 was 16.7%, in contrast with 20.3% within the second quarter of 2021 and 18.1% within the first quarter of 2022. The lower of car margin over the second quarter of 2021 and the primary quarter of 2022 was primarily attributed to the elevated battery price per unit, which was partially offset by favorable modifications in gross sales mixture of the ET7.

Operating Expenses

• Research and growth bills within the second quarter of 2022 had been RMB2,149.5 million (US$320.9 million), representing a rise of 143.2% from the second quarter of 2021 and a rise of twenty-two.0% from the primary quarter of 2022. Excluding share-based compensation bills (non-GAAP), analysis and growth bills had been RMB1,873.6 million (US$279.7 million), representing a rise of 133.9% from the second quarter of 2021 and a rise of 23.7% from the primary quarter of 2022. The improve in analysis and growth bills over the second quarter of 2021 and first quarter of 2022 was primarily attributed to the elevated personnel prices in analysis and growth features in addition to the incremental design and growth prices for brand new merchandise and applied sciences.
• Selling, common and administrative bills within the second quarter of 2022 had been RMB2,282.5 million (US$340.8 million), representing a rise of 52.4% from the second quarter of 2021 and a rise of 13.3% from the primary quarter of 2022. Excluding share-based compensation bills (non-GAAP), promoting, common and administrative bills had been RMB2,082.1 million (US$310.8 million), representing a rise of 55.7% from the second quarter of 2021 and a rise of 15.6% from the primary quarter of 2022. The improve in promoting, common and administrative bills over the second quarter of 2021 was primarily because of the improve in personnel prices and prices associated to gross sales and repair community enlargement. The improve in promoting, common and administrative bills over the primary quarter of 2022 was primarily attributed to the rise in personnel prices and advertising and promotional bills, together with bills associated to the launch of the ES7.

Loss from Operations

• Loss from operations within the second quarter of 2022 was RMB2,845.6 million (US$424.8 million), representing a rise of 272.8% from the second quarter of 2021 and a rise of 30.0% from the primary quarter of 2022. Excluding share-based compensation bills, adjusted loss from operations (non-GAAP) was RMB2,355.1 million (US$351.6 million) within the second quarter of 2022, representing a rise of 360.1% from the second quarter of 2021 and a rise of 37.3% from the primary quarter of 2022.

Share-based Compensation Expenses

• Share-based compensation bills within the second quarter of 2022 had been RMB490.5 million (US$73.2 million), representing a rise of 95.1% from the second quarter of 2021 and a rise of three.7% from the primary quarter of 2022. The improve in share-based compensation bills over the second quarter of 2021 was primarily attributed to the grant of choices and restricted shares on a continued foundation. Share-based compensation remained comparatively secure in contrast with the primary quarter of 2022.

Net Loss and Earnings Per Share

• Net loss within the second quarter of 2022 was RMB2,757.5 million (US$411.7 million), representing a rise of 369.6% from the second quarter of 2021 and a rise of 54.7% from the primary quarter of 2022. Excluding share-based compensation bills, adjusted web loss (non-GAAP) was RMB2,267.0 million (US$338.5 million) within the second quarter of 2022, representing a rise of 575.1% from the second quarter of 2021 and a rise of 73.1% from the primary quarter of 2022.
• Net loss attributable to NIO’s odd shareholders within the second quarter of 2022 was RMB 2,745.0 million (US$409.8 million), representing a rise of 316.4% from the second quarter of 2021 and a rise of fifty.4% from the primary quarter of 2022. Excluding share-based compensation bills, adjusted web loss attributable to NIO’s odd shareholders (non-GAAP) was RMB2,185.6 million (US$326.3 million) within the second quarter of 2022.
• Basic and diluted web loss per Ordinary Share/ADS within the second quarter of 2022 had been each RMB1.68 (US$0.25), in contrast with RMB0.42 within the second quarter of 2021 and RMB1.12 within the first quarter of 2022. Excluding share-based compensation bills and accretion on redeemable non-controlling pursuits to redemption worth, adjusted primary and diluted web loss per ADS (non-GAAP) had been each RMB1.34 (US$0.20), in contrast with RMB0.21 within the second quarter of 2021 and RMB0.79 within the first quarter of 2022.

Balance Sheets

• Balance of money and money equivalents, restricted money and short-term funding was RMB54.4 billion (US$8.1 billion) as of June 30, 2022.

Business Outlook

For the third quarter of 2022, the Company expects:

• Deliveries of autos to be between 31,000 and 33,000 autos, representing a rise of roughly 26.8% to 35.0% from the identical quarter of 2021.
• Total revenues to be between RMB12,845 million (US$1,918 million) and RMB13,598 million (US$2,030 million), representing a rise of roughly 31.0% to 38.7% from the identical quarter of 2021.

This business outlook displays the Company’s present and preliminary view on the business state of affairs and market situation, which is topic to vary.

Conference Call

The Company’s administration will host an earnings convention name at 8:00 AM U.S. Eastern Time on September 7, 2022 (8:00 PM Beijing/Hong Kong/Singapore Time on September 7, 2022).

A dwell and archived webcast of the convention name will probably be accessible on the Company’s investor relations web site at https://ir.nio.com/news-events/events.

For individuals who want to be part of the convention utilizing dial-in numbers, please register prematurely utilizing the hyperlink supplied beneath and dial in 10 minutes previous to the decision. Dial-in numbers, passcode and distinctive entry PIN could be supplied upon registering.

https://s1.c-conf.com/diamondpass/10024719-87cksh.html

A replay of the convention name will probably be accessible by telephone on the following numbers, till September 14, 2022:

About NIO Inc.

NIO Inc. is a pioneer and a number one firm within the premium good electrical car market. Founded in November 2014, NIO’s mission is to form a joyful way of life. NIO goals to construct a group beginning with good electrical autos to share pleasure and develop along with customers. NIO designs, develops, collectively manufactures and sells premium good electrical autos, driving improvements in next-generation applied sciences in autonomous driving, digital applied sciences, electrical powertrains and batteries. NIO differentiates itself by way of its steady technological breakthroughs and improvements, similar to its industry-leading battery swapping applied sciences, Battery as a Service, or BaaS, in addition to its proprietary autonomous driving applied sciences and Autonomous Driving as a Service, or ADaaS. NIO’s product portfolio consists of the ES8, a six- or seven-seater flagship premium good electrical SUV, the ES7, a mid-large five-seater premium good electrical SUV, the ES6, a five-seater high-performance premium good electrical SUV, the EC6, a five-seater premium good electrical coupe SUV, the ET7, a flagship premium good electrical sedan, and the ET5, a mid-size premium good electrical sedan.

Safe Harbor Statement

This press launch comprises statements which will represent “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements will be recognized by terminology similar to “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and related statements. NIO may make written or oral forward-looking statements in its periodic experiences to the U.S. Securities and Exchange Commission, in its annual report back to shareholders, in bulletins, circulars or different publications made on the web sites of every of The Stock Exchange of Hong Kong Limited (the “SEHK”) and the Singapore Exchange Securities Trading Limited (the “SGX-ST”), in press releases and different written supplies and in oral statements made by its officers, administrators or staff to 3rd events. Statements that aren’t historic information, together with statements about NIO’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements contain inherent dangers and uncertainties. Quite a few components might trigger precise outcomes to vary materially from these contained in any forward-looking assertion, together with however not restricted to the next: NIO’s methods; NIO’s future business growth, monetary situation and outcomes of operations; NIO’s potential to develop and manufacture a automobile of enough high quality and attraction to clients on schedule and on a big scale; its potential to make sure and broaden manufacturing capacities together with establishing and sustaining partnerships with third events; its potential to supply handy and complete energy options to its clients; the viability, progress potential and prospects of the newly launched BaaS and ADaaS; its potential to enhance the applied sciences or develop different applied sciences in assembly evolving market demand and {industry} growth; NIO’s potential to fulfill the mandated security requirements regarding motor autos; its potential to safe provide of uncooked supplies or different elements utilized in its autos; its potential to safe enough reservations and gross sales of the ES8, ES7, ES6, EC6, ET7 and ET5; its potential to regulate prices related to its operations; its potential to construct the NIO model; common financial and business circumstances globally and in China and assumptions underlying or associated to any of the foregoing. Further data relating to these and different dangers is included in NIO’s filings with the U.S. Securities and Exchange Commission and the bulletins and filings on the web sites of every of the SEHK and SGX-ST. All data supplied on this press launch is as of the date of this press launch, and NIO doesn’t undertake any obligation to replace any forward-looking assertion, besides as required underneath relevant regulation.

Non-GAAP Disclosure

The Company makes use of non-GAAP measures, similar to adjusted price of gross sales (non-GAAP), adjusted analysis and growth bills (non-GAAP), adjusted promoting, common and administrative bills (non-GAAP), adjusted loss from operations (non-GAAP), adjusted web loss (non-GAAP), adjusted web loss attributable to odd shareholders (non-GAAP), adjusted primary and diluted web loss per share (non-GAAP) and adjusted primary and diluted web loss per ADS (non-GAAP), in evaluating its working outcomes and for monetary and operational decision-making functions. The Company defines adjusted price of gross sales (non-GAAP), adjusted analysis and growth bills (non-GAAP), adjusted promoting, common and administrative bills (non-GAAP), adjusted loss from operations (non-GAAP) and adjusted web loss (non-GAAP) as price of gross sales, analysis and growth bills, promoting, common and administrative bills, loss from operations and web loss excluding share-based compensation bills. The Company defines adjusted web loss attributable to odd shareholders (non-GAAP), adjusted primary and diluted web loss per share (non-GAAP) and adjusted primary and diluted web loss per ADS (non-GAAP) as web loss attributable to odd shareholders, primary and diluted web loss per share and primary and diluted web loss per ADS excluding share-based compensation bills and accretion on redeemable non-controlling pursuits to redemption worth. By excluding the influence of share-based compensation bills and accretion on redeemable non-controlling pursuits to redemption worth, the Company believes that the non-GAAP monetary measures assist determine underlying tendencies in its business and improve the general understanding of the Company’s previous efficiency and future prospects. The Company additionally believes that the non-GAAP monetary measures enable for larger visibility with respect to key metrics utilized by the Company’s administration in its monetary and operational decision-making.

The non-GAAP monetary measures should not offered in accordance with U.S. GAAP and could also be totally different from non-GAAP strategies of accounting and reporting utilized by different firms. The non-GAAP monetary measures have limitations as analytical instruments and when assessing the Company’s working efficiency, traders mustn’t contemplate them in isolation, or as an alternative to web loss or different consolidated statements of complete loss information ready in accordance with U.S. GAAP. The Company encourages traders and others to assessment its monetary data in its entirety and never depend on a single monetary measure.

The Company mitigates these limitations by reconciling the non-GAAP monetary measures to probably the most comparable U.S. GAAP efficiency measures, all of which needs to be thought of when evaluating the Company’s efficiency.

For extra data on the non-GAAP monetary measures, please see the desk captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth on the finish of this press launch.

Exchange Rate

This announcement comprises translations of sure Renminbi quantities into U.S. {dollars} at specified charges solely for the comfort of the reader. Unless in any other case acknowledged, all translations from Renminbi to U.S. {dollars} had been made on the price of RMB6.6981 to US$1.00, the midday shopping for price in impact on June 30, 2022 within the H.10 statistical launch of the Federal Reserve Board. The Company makes no illustration that the Renminbi or U.S. {dollars} quantities referred could possibly be transformed into U.S. {dollars} or Renminbi, because the case could also be, at any explicit price or in any respect.

Statement Regarding Preliminary Unaudited Financial Information

The unaudited monetary data set out on this earnings launch is preliminary and topic to potential changes. Adjustments to the consolidated monetary statements could also be recognized when audit work has been carried out for the Company’s year-end audit, which might end in vital variations from this preliminary unaudited monetary data.

For extra data, please go to: http://ir.nio.com.

Investor Relations
[email protected]

Media Relations
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Source: NIO

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Unaudited Consolidated Balance Sheets

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Unaudited Consolidated Balance Sheets

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Unaudited Consolidated Statements of Comprehensive Loss

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Unaudited Consolidated Statements of Comprehensive Loss

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Unaudited Reconciliation of GAAP and Non-GAAP Results

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i All translations from RMB to USD for the three months and 6 months ended June 30, 2022 had been made on the price of RMB6.6981 to US$1.00, the midday shopping for price in impact on June 30, 2022 within the H.10 statistical launch of the Federal Reserve Board.

ii Vehicle margin is the margin of recent car gross sales, which is calculated primarily based on revenues and price of gross sales derived from new car gross sales solely.

iii Each ADS represents one odd share.

iv Except for gross margin and car margin, the place absolute modifications as an alternative of proportion modifications are calculated.