NIO Inc. (“NIO” or the “Company”) (NYSE: NIO), a pioneer in China’s
premium electric vehicle market, today announced its unaudited
financial results for the second quarter ended June 30, 2019.
Operating Highlights for the Second
Quarter of 2019
- Deliveries of the ES8 were 3,140 in the second
quarter of 2019, compared with 3,989 vehicles delivered in the
first quarter of 2019.
- Deliveries of the ES6 reached 413 in the
second quarter of 2019.
Key Operating Results |
|
|
|
2019 Q2 |
2019 Q1 |
Deliveries |
|
|
ES8 |
3,140 |
3,989 |
ES6 |
413 |
— |
Total |
3,553 |
3,989 |
Financial Highlights for the Second
Quarter of 2019
- Vehicle sales were RMB1,414.5 million
(US$206.1 million) in the second quarter of 2019, representing a
decrease of 7.9% from the first quarter of 2019.
- Vehicle margin2 was negative 24.1%, compared
with negative 7.2% in the first quarter of 2019. Excluding accrued
recall costs, vehicle margin in the second quarter was negative
4.0%.
- Total revenues were RMB1,508.6 million
(US$219.7 million) in the second quarter of 2019, representing a
decrease of 7.5% from the first quarter of 2019.
- Gross margin was negative 33.4%, compared with
negative 13.4% in the first quarter of 2019. Excluding accrued
recall costs, gross margin in the second quarter was negative
10.9%.
- Loss from operations was RMB3,226.1 million
(US$469.9 million) in the second quarter of 2019, representing an
increase of 23.2% from the first quarter of 2019 and a 72.1%
increase from the same period of 2018. Excluding accrued recall
costs and expenses, loss from operations in the second quarter was
RMB2,869.7 million (US$418.0 million). Excluding share-based
compensation expenses, adjusted loss from operations (non-GAAP) was
RMB3,133.9 million (US$456.5 million) in the second quarter of
2019, representing an increase of 25.5% from the first quarter of
2019 and a 73.0% increase from the same period of 2018.
- Net loss was RMB3,285.8 million (US$478.6
million) in the second quarter of 2019, representing an increase of
25.2% from the first quarter of 2019 and an 83.1% increase from the
same period of 2018. Excluding share-based compensation expenses,
adjusted net loss (non-GAAP) was RMB3,193.6 million (US$465.2
million) in the second quarter of 2019, representing an increase of
27.5% from the first quarter of 2019 and an 84.5% increase from the
same period of 2018.
- Net loss attributable to NIO’s ordinary
shareholders was RMB3,313.7 million (US$482.7 million) in
the second quarter of 2019, representing an increase of 24.9% from
the first quarter of 2019 and a decrease of 45.8% from the same
period of 2018. 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 RMB3,189.9 million (US$464.7
million).
- Basic and diluted net loss per American depositary
share (ADS)3 were both RMB3.23 (US$0.47) in the second
quarter of 2019. Excluding share-based compensation expenses and
accretion on redeemable non-controlling interests to redemption
value, adjusted basic and diluted net loss per ADS (non-GAAP) were
both RMB3.11 (US$0.45).
- Cash and cash equivalents, restricted cash and
short-term investment were RMB3,455.6 million (US$503.4
million) as of June 30, 2019.
Key Financial Results |
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|
|
|
|
|
|
|
|
|
|
|
|
(in RMB million, except for per ordinary share data and
percentage) |
|
|
|
|
|
|
|
|
|
2019 Q2 |
2019 Q1 |
|
2018 Q2 |
|
% Change4 |
|
|
|
|
|
|
QoQ |
YoY |
Vehicle Sales |
|
1,414.5 |
|
1,535.2 |
|
|
44.4 |
|
|
-7.9 |
% |
3,086.0 |
% |
Vehicle Margin |
|
-24.1 |
% |
-7.2 |
% |
|
-317.9 |
% |
|
-16.9 |
% |
293.8 |
% |
Total Revenues |
|
1,508.6 |
|
1,631.2 |
|
|
46.0 |
|
|
-7.5 |
% |
3,180.1 |
% |
Gross Margin |
|
-33.4 |
% |
-13.4 |
% |
|
-333.1 |
% |
|
-20.0 |
% |
299.7 |
% |
Loss from Operations |
|
(3,226.1 |
) |
(2,617.7 |
) |
|
(1,875.0 |
) |
|
23.2 |
% |
72.1 |
% |
Adjusted Loss from Operations (non-GAAP) |
(3,133.9 |
) |
(2,498.1 |
) |
|
(1,811.5 |
) |
|
25.5 |
% |
73.0 |
% |
Net Loss |
|
(3,285.8 |
) |
(2,623.6 |
) |
|
(1,794.5 |
) |
|
25.2 |
% |
83.1 |
% |
Adjusted Net Loss (non-GAAP) |
(3,193.6 |
) |
(2,504.0 |
) |
|
(1,731.1 |
) |
|
27.5 |
% |
84.5 |
% |
Net Loss Attributable to Ordinary Shareholders |
(3,313.7 |
) |
(2,652.0 |
) |
|
(6,110.6 |
) |
|
24.9 |
% |
-45.8 |
% |
Net Loss per Ordinary Share-Basic and Diluted |
(3.23 |
) |
(2.56 |
) |
|
(204.93 |
) |
|
25.9 |
% |
-98.4 |
% |
Adjusted Net Loss per Ordinary Share-Basic and Diluted
(non-GAAP) |
(3.11 |
) |
(2.42 |
) |
|
(57.82 |
) |
|
28.5 |
% |
-94.6 |
% |
Recent Developments
Deliveries in July and August
2019
- Deliveries in July were 837 vehicles, consisting of 164 ES8s
and 673 ES6s. Deliveries during the month were impacted by the
Company’s voluntary battery recall for 4,803 ES8s, as the Company
prioritized battery manufacturing capacity which significantly
affected production and deliveries.
- Deliveries in August were 1,943 vehicles, consisting of 146
ES8s and 1,797 ES6s, and representing 132.1% sequential
improvement.
Convertible Note Subscription Agreements
with Tencent and Bin Li
- The Company has entered into convertible note subscription
agreements with an affiliate of Tencent Holdings Limited
(“Tencent”) and Mr. Bin Li, chairman and chief executive officer of
the Company (together with Tencent, the “Investors”), pursuant to
which NIO will issue and sell convertible notes (“Notes”) in an
aggregate principal amount of US$200 million to the Investors
through a private placement. Consummation of the placement of the
Notes is subject to satisfaction of customary closing conditions
and is expected to close before the end of September.
- Tencent and Mr. Li will each subscribe for US$100 million
principal amount of the convertible notes, each in two equally
split tranches. The Notes issued in the first tranche will mature
in 360 days, bear no interest, and require the Company to pay a
premium at 2% of the principal amount at maturity. The Notes issued
in the second tranche will mature in three years, bear no interest,
and require the Company to pay a premium at 6% of the principal
amount at maturity. The 360-day Notes will be convertible into
Class A Ordinary Shares (or ADSs) of the Company at a conversion
price of US$2.98 per ADS at the holder’s option from the 15th day
immediately prior to maturity, and the 3-year Notes will be
convertible into Class A Ordinary Shares (or ADSs) of the Company
at a conversion price of US$3.12 per ADS at the holder’s option
from the first anniversary of the issuance date. The holders of the
3-year Notes will have the right to require the Company to
repurchase for cash all of the Notes or any portion thereof on
February 1, 2022.
CEO Comments
“During the second quarter of 2019, we delivered
a total of 3,553 ES8 and ES6 vehicles. This was followed by 837
units in July and 1,943 units in August, bringing our total
aggregate deliveries to 21,670 as of August 31, 2019,” said William
Bin Li, founder, chairman and chief executive officer of NIO. “Our
ES6, the Company’s 5-seater high-performance premium electric SUV,
began rolling off the production line in June, and we are ramping
up the production and deliveries for the coming months. In an
environment of softer macro-economic and auto market conditions, we
continue to work hard to expand our market penetration. Starting in
October, we will begin delivering the ES6 and ES8 with an 84-kWh
battery pack, extending their NEDC driving range to 510 km and 430
km, respectively. Going forward, we will continue to enhance sales
by strengthening our value proposition through technology
advancement.”
“In response to the overall tempered market
conditions, we are also working hard to maximize returns on our
resources and have implemented comprehensive efficiency and cost
control measures across the organization. These measures aim to
further improve efficiency and streamline operations within our
sales and service network and R&D activities. We target to
reduce our global headcount to be around 7,800 by the end of the
third quarter from over 9,900 in January 2019, and aim to further
pursue a leaner operation through additional restructuring and
spinning off some non-core businesses by year end,” Mr. Li
concluded.
Financial Results for the Second Quarter
of 2019
Revenues
- Vehicle sales in the second quarter of 2019
were RMB1,414.5 million (US$206.1 million), representing a decrease
of 7.9% from the first quarter of 2019. The decrease in vehicle
sales over the first quarter of 2019 was mainly due to the decrease
in sales volume in the second quarter of 2019 caused by the
electric vehicle (EV) subsidy reduction announced in late March and
the slowdown of macro-economic conditions in China which has been
exacerbated by the US-China trade war.
- Other sales in the second quarter of 2019 were
RMB94.0 million (US$13.7 million), representing a decrease of 2.0%
from the first quarter of 2019. The decrease in other sales over
the first quarter of 2019 was mainly attributed to the sales
decline in charging piles, in line with the decline in vehicle
sales.
- Total revenues in the second quarter of 2019
were RMB1,508.6 million (US$219.7 million), representing a decrease
of 7.5% from the first quarter of 2019.
Cost of Sales and Gross Margin
- Cost of sales in the second quarter of 2019
was RMB2,012.8 million (US$293.2 million), representing an increase
of 8.8% from the first quarter of 2019. The increase in cost of
sales over the first quarter of 2019 was mainly caused by accrued
recall costs in relation to the Company’s voluntary recall of 4,803
vehicles announced on June 27, 2019. Total recall costs accrued in
the second quarter of 2019 were RMB339.1 (US$49.4 million),
including RMB283.3 million (US$41.3 million) recorded in cost of
vehicle sales and RMB55.8 million (US$8.1 million) recorded in cost
of other sales, respectively. Excluding accrued recall costs, cost
of sales in the second quarter was RMB1,673.7 million (US$243.8
million), representing a decrease of 9.6% from the first quarter of
2019.
- Vehicle margin in the second quarter of 2019
was negative 24.1%, compared with negative 7.2% in the first
quarter of 2019. The decrease of vehicle margin was mainly driven
by the accrued recall costs in relation to the Company’s voluntary
recall of 4,803 vehicles announced on June 27, 2019. Excluding
accrued recall costs, vehicle margin in the second quarter was
negative 4.0%.
- Gross margin in the second quarter of 2019 was
negative 33.4%, compared with negative 13.4% in the first quarter
of 2019, which was mainly influenced by the decrease of vehicle
margin. Excluding accrued recall costs, gross margin in the second
quarter was negative 10.9%.
Operating Expenses
- Research and development expenses in the
second quarter of 2019 were RMB1,300.5 million (US$189.4 million),
representing an increase of 20.6% from the first quarter of 2019
and an increase of 70.0% from the second quarter of 2018. Excluding
share-based compensation expenses, adjusted research and
development expenses (non-GAAP) were RMB1,281.7 million (US$186.7
million), representing an increase of 22.5% from the first quarter
of 2019 and an increase of 68.3% from the second quarter of 2018.
The increase in research and development expenses over the first
quarter of 2019 was primarily attributed to increased rigorous
testing activities of ES6 before its mass production in the second
quarter of 2019.
- Selling, general and administrative expenses
in the second quarter of 2019 were RMB1,421.4 million (US$207.0
million), representing an increase of 7.7% from the first quarter
of 2019 and an increase of 48.6% from the second quarter of 2018.
Excluding share-based compensation expenses, adjusted selling,
general and administrative expenses (non-GAAP) were RMB1,351.3
million (US$196.8 million), representing an increase of 9.5% from
the first quarter of 2019 and an increase of 50.7% from the second
quarter of 2018. The increase in selling, general and
administrative expenses over the first quarter of 2019 was
primarily driven by the Company’s marketing expenditure on the
Shanghai auto show and ES6 test drive campaign in the second
quarter.
Loss from Operations
- Loss from operations in the second quarter of
2019 was RMB3,226.1 million (US$469.9 million), representing an
increase of 23.2% from the first quarter of 2019 and an increase of
72.1% from the second quarter of 2018. Excluding accrued recall
costs and expenses, loss from operations in the second quarter was
RMB2,869.7 million (US$418.0 million). Excluding share-based
compensation expenses, adjusted loss from operations (non-GAAP) was
RMB3,133.9 million (US$456.5 million), representing an increase of
25.5% from the first quarter of 2019 and an increase of 73.0% from
the second quarter of 2018.
Share-based Compensation
Expenses
- Share-based compensation expenses in the
second quarter of 2019 were RMB92.2 million (US$13.4 million),
representing a decrease of 22.9% from the first quarter of 2019 and
an increase of 45.3% from the second quarter of 2018. The decrease
in share-based compensation expenses over the first quarter of 2019
was primarily due to the part of the share-based compensation
expenses that are recognized using the accelerated method, under
which the expenses decrease gradually over the vesting period.
Net Loss and Earnings Per
Share
- Net loss was RMB3,285.8 million (US$478.6
million) in the second quarter of 2019, representing an increase of
25.2% from the first quarter of 2019 and an increase of 83.1% from
the second quarter of 2018. Excluding share-based compensation
expenses, adjusted net loss (non-GAAP) was RMB3,193.6 million
(US$465.2 million) in the second quarter of 2019, representing an
increase of 27.5% from the first quarter of 2019 and an increase of
84.5% from the second quarter of 2018.
- Net loss attributable to NIO’s ordinary
shareholders in the second quarter of 2019 was RMB3,313.7
million (US$482.7 million), representing an increase of 24.9% from
the first quarter of 2019 and a decrease of 45.8% from the second
quarter of 2018. 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 RMB3,189.9 million (US$464.7 million).
- Basic and diluted net loss per ADS in the
second quarter of 2019 were both RMB3.23 (US$0.47). Excluding
share-based compensation expenses and accretion on redeemable
non-controlling interests to redemption value, adjusted basic and
diluted net loss per ADS (non-GAAP) were both RMB3.11
(US$0.45).
Balance Sheets
- Balance of cash and cash equivalents, restricted cash
and short-term investment was RMB3,455.6 million (US$503.4
million) as of June 30, 2019.
- On January 1, 2019, the Company adopted ASC 842, Leases and
used the additional transition method to initially apply this new
lease standard at the adoption date. Right-of-use assets and lease
liabilities were recognized on the Company's consolidated financial
statements.
Business Outlook
For the third quarter of 2019, the Company
expects:
- Deliveries of vehicles to be between 4,200 and
4,400 units, representing an increase of approximately 18.2% to
23.8% from the second quarter of 2019.
- Total revenues to be between RMB1,593 million
(US$232.0 million) and RMB1,663million (US$242.2 million),
representing an increase by approximately 5.6% to 10.3% from the
second quarter of 2019.
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
Management will not hold its previously
scheduled second quarter 2019 earnings conference call at 8:00 a.m.
Eastern Time today, Tuesday, September 24, 2019 (8:00 p.m. Beijing
Time on September 24, 2019).
About NIO Inc.
NIO Inc. is a pioneer in China’s premium
electric vehicle market. Founded in November 2014, NIO’s mission is
to shape a joyful lifestyle by offering premium smart electric
vehicles and being the best user enterprise. NIO designs, jointly
manufactures, and sells smart and connected premium electric
vehicles, driving innovations in next generation technologies in
connectivity, autonomous driving and artificial intelligence.
Redefining the user experience, NIO provides users with
comprehensive, convenient and innovative charging solutions and
other user-centric services. NIO began deliveries of the ES8, a
7-seater high-performance premium electric SUV
in China in June 2018, and its variant, the
six-seater ES8, in March 2019. NIO officially launched the ES6, a
5-seater high-performance premium electric SUV, in December 2018
and began deliveries in June 2019.
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. Among other things, the Business Outlook
and quotations from management in this announcement, as well as
NIO’s strategic and operational plans, contain forward-looking
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 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 a car of sufficient quality and appeal to
customers on schedule and on a large scale; its ability to grow
manufacturing in collaboration with partners; its ability to
provide convenient charging solutions to our customers; its ability
to satisfy the mandated safety standards relating to motor
vehicles; its ability to secure supply of raw materials or other
components used in our vehicles; its ability to secure sufficient
reservations and sales of the ES8 and ES6; its ability to control
costs associated with our operations; its ability to build our NIO
brand; 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. 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), adjusted basic
and diluted net loss per share (non-GAAP) and adjusted basic and
diluted net loss per ADS (non-GAAP), in evaluating its operating
results and for financial and operational decision-making purposes.
By excluding the impact of share-based compensation expenses,
accretion on convertible redeemable preferred shares to redemption
value 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 RMB6.8650 to US$1.00, the noon buying rate in effect on
June 28, 2019 in the H.10 statistical release of the Federal
Reserve Board. The Company makes no representation that the
Renminbi or U.S. dollars amounts referred could be converted into
U.S. dollars or Renminbi, as the case may be, at any particular
rate or at all.
Statement Regarding Preliminary
Unaudited Financial Information
The unaudited financial information set out in
this earnings release is preliminary and subject to potential
adjustments. Adjustments to the consolidated financial statements
may be identified when audit work has been performed for the
Company’s year-end audit, which could result in significant
differences from this preliminary unaudited financial
information.
For more information, please visit:
http://ir.nio.com
Contacts:
NIO Inc.Investor RelationsTel:
+86-21-6908-3681Email: ir@nio.com
The Piacente Group, Inc.Brandi
PiacenteTel: +1-212-481-2050Email: nio@tpg-ir.com
Ross WarnerTel: +86-10-6508-0677Email:
nio@tpg-ir.com
Source: NIO
NIO INC.
Consolidated Balance Sheets
Amounts
expressed in Renminbi (“RMB”), unless otherwise stated |
(in thousands,
except for share and per share data) |
|
|
|
|
|
|
|
December 31, 2018 |
|
June 30, 2019 |
|
June 30, 2019 |
|
(audited) |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
(US$) |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
3,133,847 |
|
2,352,277 |
|
342,648 |
Restricted cash |
57,012 |
|
83,300 |
|
12,134 |
Short-term investment |
5,154,703 |
|
1,020,000 |
|
148,580 |
Trade receivable |
756,508 |
|
1,253,019 |
|
182,523 |
Amounts due from related
parties |
88,066 |
|
53,324 |
|
7,768 |
Inventory |
1,465,239 |
|
1,390,696 |
|
202,578 |
Prepayments and other current
assets |
1,514,257 |
|
1,842,886 |
|
268,447 |
|
|
|
|
|
|
Total current
assets |
12,169,632 |
|
7,995,502 |
|
1,164,678 |
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
Long-term restricted cash |
33,528 |
|
20,608 |
|
3,002 |
Property, plant and equipment,
net |
4,853,157 |
|
5,612,717 |
|
817,583 |
Intangible assets, net |
3,470 |
|
2,839 |
|
414 |
Land use rights, net |
213,662 |
|
211,238 |
|
30,770 |
Long-term investments |
148,303 |
|
178,074 |
|
25,939 |
Amounts due from related
parties |
7,970 |
|
7,970 |
|
1,161 |
Right-of-use assets -
operating lease |
— |
|
2,299,433 |
|
334,950 |
Other non-current assets |
1,412,830 |
|
1,874,537 |
|
273,057 |
|
|
|
|
|
|
Total non-current
assets |
6,672,920 |
|
10,207,416 |
|
1,486,876 |
|
|
|
|
|
|
Total
assets |
18,842,552 |
|
18,202,918 |
|
2,651,554 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Short-term borrowings |
1,870,000 |
|
1,477,600 |
|
215,237 |
Trade payable |
2,869,953 |
|
2,059,674 |
|
300,025 |
Amounts due to related
parties |
219,583 |
|
350,879 |
|
51,111 |
Taxes payable |
51,317 |
|
40,003 |
|
5,827 |
Current portion of operating
lease liabilities |
— |
|
524,675 |
|
76,428 |
Current portion of long-term
borrowings |
198,852 |
|
291,707 |
|
42,492 |
Accruals and other
liabilities |
3,383,681 |
|
3,501,979 |
|
510,121 |
|
|
|
|
|
|
Total current
liabilities |
8,593,386 |
|
8,246,517 |
|
1,201,241 |
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
Long-term borrowings |
1,168,012 |
|
6,514,508 |
|
948,945 |
Non-current operating lease
liabilities |
— |
|
1,932,100 |
|
281,442 |
Other non-current
liabilities |
930,812 |
|
1,053,533 |
|
153,464 |
|
|
|
|
|
|
Total non-current
liabilities |
2,098,824 |
|
9,500,141 |
|
1,383,851 |
|
|
|
|
|
|
Total
liabilities |
10,692,210 |
|
17,746,658 |
|
2,585,092 |
|
|
|
|
|
|
NIO INC.
Consolidated Balance Sheets
Amounts
expressed in Renminbi (“RMB”), unless otherwise stated |
(in thousands,
except for share and per share data) |
|
|
|
|
|
December 31, 2018 |
June 30, 2019 |
June 30, 2019 |
|
(audited) |
(unaudited) |
(unaudited) |
|
|
|
(US$) |
MEZZANINE
EQUITY |
|
|
|
Redeemable non-controlling interests |
1,329,197 |
|
|
1,391,972 |
|
|
202,764 |
|
|
|
|
|
Total mezzanine
equity |
1,329,197 |
|
|
1,391,972 |
|
|
202,764 |
|
|
|
|
|
SHAREHOLDERS’
EQUITY |
|
|
|
Ordinary shares |
1,809 |
|
|
1,818 |
|
|
265 |
|
Treasury shares |
(9,186 |
) |
|
— |
|
|
— |
|
Additional paid in
capital |
41,918,936 |
|
|
40,208,643 |
|
|
5,857,049 |
|
Accumulated other
comprehensive loss |
(34,708 |
) |
|
(165,432 |
) |
|
(24,098 |
) |
Accumulated deficit |
(35,039,810 |
) |
|
(41,005,495 |
) |
|
(5,973,124 |
) |
|
|
|
|
Total NIO Inc.
shareholders’ equity |
6,837,041 |
|
|
(960,466 |
) |
|
(139,908 |
) |
|
|
|
|
Non-controlling interests |
(15,896 |
) |
|
24,754 |
|
|
3,606 |
|
|
|
|
|
Total shareholders’
equity |
6,821,145 |
|
|
(935,712 |
) |
|
(136,302 |
) |
|
|
|
|
Total liabilities,
mezzanine equity and shareholders’ equity |
18,842,552 |
|
|
18,202,918 |
|
|
2,651,554 |
|
|
|
|
|
NIO INC.
Consolidated Statements of Comprehensive
Loss
Amounts
expressed in Renminbi (“RMB”), unless otherwise stated |
(in thousands,
except for share and per share data) |
|
|
|
Three Months Ended |
|
June 30, 2018 |
March 31, 2019 |
June 30, 2019 |
June 30, 2019 |
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
|
(US$) |
Revenues: |
|
|
|
|
Vehicle sales |
44,399 |
|
|
1,535,190 |
|
|
1,414,533 |
|
|
206,050 |
|
Other sales |
1,592 |
|
|
95,971 |
|
|
94,037 |
|
|
13,698 |
|
Total
revenues |
45,991 |
|
|
1,631,161 |
|
|
1,508,570 |
|
|
219,748 |
|
Cost of
sales: |
|
|
|
|
Vehicle sales |
(185,531 |
) |
|
(1,645,189 |
) |
|
(1,755,017 |
) |
|
(255,647 |
) |
Other sales |
(13,648 |
) |
|
(205,273 |
) |
|
(257,737 |
) |
|
(37,544 |
) |
Total cost
of sales |
(199,179 |
) |
|
(1,850,462 |
) |
|
(2,012,754 |
) |
|
(293,191 |
) |
Gross loss |
(153,188 |
) |
|
(219,301 |
) |
|
(504,184 |
) |
|
(73,443 |
) |
Operating
expenses: |
|
|
|
|
Research and development |
(765,205 |
) |
|
(1,078,448 |
) |
|
(1,300,531 |
) |
|
(189,444 |
) |
Selling, general and administrative |
(956,568 |
) |
|
(1,319,937 |
) |
|
(1,421,392 |
) |
|
(207,049 |
) |
|
|
|
|
|
Total
operating expenses |
(1,721,773 |
) |
|
(2,398,385 |
) |
|
(2,721,923 |
) |
|
(396,493 |
) |
|
|
|
|
|
Loss from
operations |
(1,874,961 |
) |
|
(2,617,686 |
) |
|
(3,226,107 |
) |
|
(469,936 |
) |
|
|
|
|
|
Interest
income |
21,128 |
|
|
62,738 |
|
|
46,519 |
|
|
6,776 |
|
Interest
expenses |
(14,442 |
) |
|
(68,118 |
) |
|
(96,884 |
) |
|
(14,113 |
) |
Share of
(losses)/income of equity investees |
(6,525 |
) |
|
2,112 |
|
|
(28,214 |
) |
|
(4,110 |
) |
Other
income/(loss), net |
82,778 |
|
|
(1,324 |
) |
|
22,600 |
|
|
3,292 |
|
|
|
|
|
|
Loss
before income tax expense |
(1,792,022 |
) |
|
(2,622,278 |
) |
|
(3,282,086 |
) |
|
(478,091 |
) |
|
|
|
|
|
Income tax
expense |
(2,485 |
) |
|
(1,341 |
) |
|
(3,679 |
) |
|
(536 |
) |
|
|
|
|
|
Net
loss |
(1,794,507 |
) |
|
(2,623,619 |
) |
|
(3,285,765 |
) |
|
(478,627 |
) |
|
|
|
|
|
Accretion on
convertible redeemable preferred shares to redemption value |
(4,323,154 |
) |
|
— |
|
|
— |
|
|
— |
|
Accretion on
redeemable non-controlling interests to redemption value |
— |
|
|
(31,214 |
) |
|
(31,561 |
) |
|
(4,597 |
) |
Net loss
attributable to non-controlling interests |
7,036 |
|
|
2,804 |
|
|
3,670 |
|
|
535 |
|
|
|
|
|
|
Net loss
attributable to ordinary shareholders of NIO Inc. |
(6,110,625 |
) |
|
(2,652,029 |
) |
|
(3,313,656 |
) |
|
(482,689 |
) |
|
|
|
|
|
Net
loss |
(1,794,507 |
) |
|
(2,623,619 |
) |
|
(3,285,765 |
) |
|
(478,627 |
) |
Other
comprehensive (loss)/income |
|
|
|
|
Foreign currency
translation adjustment, net of nil tax |
1,217 |
|
|
(60,585 |
) |
|
(70,139 |
) |
|
(10,217 |
) |
Total
other comprehensive (loss)/income |
1,217 |
|
|
(60,585 |
) |
|
(70,139 |
) |
|
(10,217 |
) |
Total
comprehensive loss |
(1,793,290 |
) |
|
(2,684,204 |
) |
|
(3,355,904 |
) |
|
(488,844 |
) |
Accretion on convertible redeemable preferred shares to redemption
value |
(4,323,154 |
) |
|
— |
|
|
— |
|
|
— |
|
Accretion on redeemable
non-controlling interests to redemption value |
— |
|
|
(31,214 |
) |
|
(31,561 |
) |
|
(4,597 |
) |
Net loss attributable to
non-controlling interests |
7,036 |
|
|
2,804 |
|
|
3,670 |
|
|
535 |
|
|
|
|
|
|
Comprehensive loss
attributable to ordinary shareholders of NIO Inc. |
(6,109,408 |
) |
|
(2,712,614 |
) |
|
(3,383,795 |
) |
|
(492,906 |
) |
Weighted average
number of ordinary shares used in computing net loss per
share |
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
29,818,067 |
|
|
1,034,648,189 |
|
|
1,026,505,444 |
|
|
1,026,505,444 |
|
Net loss per share
attributable to ordinary shareholders |
|
|
|
|
Basic and diluted |
(204.93 |
) |
|
(2.56 |
) |
|
(3.23 |
) |
|
(0.47 |
) |
Weighted average
number of ADS used in computing net loss per share |
|
|
|
|
Basic and diluted |
— |
|
|
1,034,648,189 |
|
|
1,026,505,444 |
|
|
1,026,505,444 |
|
Net loss per ADS
attributable to ordinary shareholders |
|
|
|
|
Basic and diluted |
— |
|
|
(2.56 |
) |
|
(3.23 |
) |
|
(0.47 |
) |
NIO INC.
Unaudited Reconciliation of GAAP and Non-GAAP
Results
Amounts
expressed in Renminbi (“RMB”), unless otherwise stated |
(in thousands,
except for share and per share data) |
|
|
|
Three Months Ended June 30, 2019 |
|
GAAPResult |
% of Total |
|
Non-GAAPAdjustment |
% of Total |
Non-GAAPResult |
% of Total |
|
|
Revenues |
|
|
Revenues |
|
Revenues |
|
|
|
|
|
|
|
|
Share-based compensation
included in cost of sales and operating expenses is as
follows: |
|
|
|
|
|
|
|
Cost of sales |
(2,012,754 |
) |
|
-133.4 |
% |
|
3,362 |
|
0.2 |
% |
|
(2,009,392 |
) |
|
-133.2 |
% |
Research and development
expenses |
(1,300,531 |
) |
|
-86.2 |
% |
|
18,784 |
|
1.2 |
% |
|
(1,281,747 |
) |
|
-85.0 |
% |
Selling, general and
administrative expenses |
(1,421,392 |
) |
|
-94.2 |
% |
|
70,064 |
|
4.6 |
% |
|
(1,351,328 |
) |
|
-89.6 |
% |
|
|
|
|
|
|
|
|
Total |
(4,734,677 |
) |
|
-313.8 |
% |
|
92,210 |
|
6.0 |
% |
|
(4,642,467 |
) |
|
-307.8 |
% |
|
|
|
|
|
|
|
|
Loss from operations |
(3,226,107 |
) |
|
-213.8 |
% |
|
92,210 |
|
6.0 |
% |
|
(3,133,897 |
) |
|
-207.8 |
% |
|
|
|
|
|
|
|
|
Net loss |
(3,285,765 |
) |
|
-217.8 |
% |
|
92,210 |
|
6.0 |
% |
|
(3,193,555 |
) |
|
-211.8 |
% |
|
|
|
|
|
|
|
|
Accretion on redeemable
non-controlling interests to redemption value |
(31,561 |
) |
|
-2.1 |
% |
|
31,561 |
|
2.1 |
% |
|
— |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
Net loss attributable to
ordinary shareholders of NIO Inc. |
(3,313,656 |
) |
|
-219.7 |
% |
|
123,771 |
|
8.2 |
% |
|
(3,189,885 |
) |
|
-211.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to ordinary shareholders, basic and diluted (RMB) |
(3.23 |
) |
|
|
|
|
0.12 |
|
|
|
|
(3.11 |
) |
|
|
|
Net loss per ADS attributable
to ordinary shareholders, basic and diluted (RMB) |
(3.23 |
) |
|
|
|
|
0.12 |
|
|
|
|
(3.11 |
) |
|
|
|
Net loss per ADS attributable
to ordinary shareholders, basic and diluted (USD) |
(0.47 |
) |
|
|
|
|
0.02 |
|
|
|
|
(0.45 |
) |
|
|
|
|
Three Months Ended March 31, 2019 |
|
GAAPResult |
% of Total |
|
Non-GAAPAdjustment |
% of Total |
Non-GAAPResult |
% of Total |
|
|
Revenues |
|
|
Revenues |
|
Revenues |
|
|
|
|
|
|
|
|
Share-based compensation
included in cost of sales and operating expenses is as
follows: |
|
|
|
|
|
|
|
Cost of sales |
(1,850,462 |
) |
|
-113.4 |
% |
|
1,475 |
|
0.0 |
% |
|
(1,848,987 |
) |
|
-113.4 |
% |
Research and development
expenses |
(1,078,448 |
) |
|
-66.1 |
% |
|
32,281 |
|
2.0 |
% |
|
(1,046,167 |
) |
|
-64.1 |
% |
Selling, general and
administrative expenses |
(1,319,937 |
) |
|
-80.9 |
% |
|
85,863 |
|
5.3 |
% |
|
(1,234,074 |
) |
|
-75.6 |
% |
|
|
|
|
|
|
|
|
Total |
(4,248,847 |
) |
|
-260.4 |
% |
|
119,619 |
|
7.3 |
% |
|
(4,129,228 |
) |
|
-253.1 |
% |
|
|
|
|
|
|
|
|
Loss from operations |
(2,617,686 |
) |
|
-160.5 |
% |
|
119,619 |
|
7.3 |
% |
|
(2,498,067 |
) |
|
-153.2 |
% |
|
|
|
|
|
|
|
|
Net loss |
(2,623,619 |
) |
|
-160.8 |
% |
|
119,619 |
|
7.3 |
% |
|
(2,504,000 |
) |
|
-153.5 |
% |
|
|
|
|
|
|
|
|
Accretion on redeemable
non-controlling interests to redemption value |
(31,214 |
) |
|
-1.9 |
% |
|
31,214 |
|
1.9 |
% |
|
— |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
Net loss attributable to
ordinary shareholders of NIO Inc. |
(2,652,029 |
) |
|
-162.7 |
% |
|
150,833 |
|
9.2 |
% |
|
(2,501,196 |
) |
|
-153.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to ordinary shareholders, basic and diluted (RMB) |
(2.56 |
) |
|
|
|
|
0.14 |
|
|
|
|
(2.42 |
) |
|
|
|
Net loss per ADS attributable
to ordinary shareholders, basic and diluted (RMB) |
(2.56 |
) |
|
|
|
|
0.14 |
|
|
|
|
(2.42 |
) |
|
|
|
|
Three Months Ended June 30, 2018 |
|
|
GAAPResult |
% of Total |
|
Non-GAAPAdjustment |
% of Total |
Non-GAAPResult |
% of Total |
|
|
Revenues |
|
|
Revenues |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
Share-based compensation
included in cost of sales and operating expenses is as
follows: |
|
|
|
|
|
|
|
|
Cost of sales |
(199,179 |
) |
|
-433.1 |
% |
|
— |
|
0.0 |
% |
|
(199,179 |
) |
|
-433.1 |
% |
|
Research and development
expenses |
(765,205 |
) |
|
-1663.8 |
% |
|
3,498 |
|
7.6 |
% |
|
(761,707 |
) |
|
-1656.2 |
% |
|
Selling, general and
administrative expenses |
(956,568 |
) |
|
-2079.9 |
% |
|
59,946 |
|
130.3 |
% |
|
(896,622 |
) |
|
-1949.6 |
% |
|
|
|
|
|
|
|
|
|
|
Total |
(1,920,952 |
) |
|
-4176.8 |
% |
|
63,444 |
|
137.9 |
% |
|
(1,857,508 |
) |
|
-4038.9 |
% |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
(1,874,961 |
) |
|
-4076.8 |
% |
|
63,444 |
|
137.9 |
% |
|
(1,811,517 |
) |
|
-3938.9 |
% |
|
|
|
|
|
|
|
|
|
|
Net loss |
(1,794,507 |
) |
|
-3901.9 |
% |
|
63,444 |
|
137.9 |
% |
|
(1,731,063 |
) |
|
-3764.0 |
% |
|
|
|
|
|
|
|
|
|
|
Accretion on redeemable
non-controlling interests to redemption value |
(4,323,154 |
) |
|
-9400.0 |
% |
|
4,323,154 |
|
9400.0 |
% |
|
— |
|
|
0.0 |
% |
|
Net loss attributable to
ordinary shareholders of NIO Inc. |
(6,110,625 |
) |
|
-13286.6 |
% |
|
4,386,598 |
|
9,537.9 |
% |
|
(1,724,027 |
) |
|
-3748.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to ordinary shareholders, basic and diluted (RMB) |
(204.93 |
) |
|
|
147.11 |
|
|
(57.82 |
) |
|
|
1 Deliveries of ES6, the Company’s 5-seater
high-performance premium electric SUV, commenced on June 18, 2019
to external users.
2 Vehicle margin is the margin of vehicle sales,
which is calculated based on revenues and cost of sales derived
from vehicle sales only.
3 Each ADS represents one ordinary share.
4 Except for gross margin and vehicle margin,
where absolute changes instead of percentage changes are
calculated.
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