Nio's (9866) second-quarter adjusted net loss narrowed by 9 percent year-on-year, beating market estimates, thanks to its record electric vehicle delivery and improved overall profit margin.
The company reported a net loss of 5.14 billion yuan (HK$5.62 billion), widening by approximately 0.3 percent year-on-year but narrowing by 25 percent quarter-on-quarter. The adjusted net loss was nearly 4.13 billion yuan, which represented a 9 percent year-on-year and a 34 percent quarterly decrease, outperforming market expectations of a 6.56 billion yuan loss.
Total revenue for the period was nearly 19.01 billion yuan, marking a 9 percent year-on-year increase and a 58 percent quarterly rise, though it fell short of the market forecast of 19.92 billion yuan. Vehicle sales accounted for 16.14 billion yuan of this revenue, up about 3 percent year-on-year and 62 percent from the previous quarter.
Nio's overall gross margin reached 10 percent, up 30 basis points year-on-year and 240 basis points quarterly. However, the vehicle margin was 10.3 percent, reflecting a decrease of 190 basis points year-on-year but a slight increase of 10 basis points from the prior quarter.
The company delivered over 72,000 vehicles in the second quarter, a 26 percent year-on-year and a 71 percent quarterly surge. Deliveries continued strongly into the third quarter, with 21,000 vehicles in July and 31,000 in August. Cumulative deliveries for the year to the end of August exceeded 166,000 units.
Looking ahead, Nio anticipates third-quarter total revenue to be between 21.81 billion yuan and 22.88 billion yuan, representing a year-on-year growth of approximately 17 percent to over 22 percent. Vehicle deliveries are projected to be in the range of 87,000 to 91,000 units, a year-on-year increase of about 41 percent to 47 percent, which would set a new quarterly record for the company.
Nio stated that its comprehensive cost-cutting and efficiency measures have begun to yield positive results. Excluding organizational optimization expenses, the non-GAAP operating loss narrowed by over 30 percent quarter-on-quarter. The company believes it is now at a structural inflection point, entering a virtuous cycle that will lead to continuously improving financial performance.
STAFF REPORTER
