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NIO Inc. Reports Unaudited Second Quarter 2022 Financial Results

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 were 25,059 vehicles

SHANGHAI, China, Sept. 07, 2022 (GLOBE NEWSWIRE) -- NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) (“NIO” or the “Company”), a pioneer and a leading company in the premium smart electric vehicle market, today announced its unaudited financial results for the second quarter ended June 30, 2022.

Operating Highlights for the Second Quarter of 2022

  • Deliveries of vehicles were 25,059 in the second quarter of 2022, including 3,681 ES8s, 9,914 ES6s, 4,715 EC6s and 6,749 ET7s, representing an increase of 14.4% from the second quarter of 2021 and a decrease of 2.8% from the first quarter of 2022.

Key Operating Results

 

 

2022 Q2

2022 Q1

2021 Q4

2021 Q3

Deliveries

25,059

25,768

25,034

24,439

 

 

 

 

 

 

2021 Q2

2021 Q1

2020 Q4

2020 Q3

Deliveries

21,896

20,060

17,353

12,206


Financial Highlights for the Second Quarter of 2022

  • Vehicle sales were RMB9,570.8 million (US$1,428.9 million) in the second quarter of 2022, representing an increase of 21.0% from the second quarter of 2021 and an increase of 3.5% from the first quarter of 2022.

  • Vehicle marginii was 16.7% in the second quarter of 2022, compared with 20.3% in the second quarter of 2021 and 18.1% in the first quarter of 2022.

  • Total revenues were RMB10,292.4 million (US$1,536.6 million) in the second quarter of 2022, representing an increase of 21.8% from the second quarter of 2021 and an increase of 3.9% from the first quarter of 2022.

  • Gross profit was RMB1,340.3 million (US$200.1 million) in the second quarter of 2022, representing a decrease of 14.8% from the second quarter of 2021 and a decrease of 7.4% from the first quarter of 2022.

  • Gross margin was 13.0% in the second quarter of 2022, compared with 18.6% in the second quarter of 2021 and 14.6% in the first quarter of 2022.

  • Loss from operations was RMB2,845.6 million (US$424.8 million) in the second quarter of 2022, representing an increase of 272.8% from the second quarter of 2021 and an increase of 30.0% from the first quarter of 2022. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB2,355.1 million (US$351.6 million) in the second quarter of 2022, representing an increase of 360.1% from the second quarter of 2021 and an increase of 37.3% from the first quarter of 2022.

  • Net loss was RMB2,757.5 million (US$411.7 million) in the second quarter of 2022, representing an increase of 369.6% from the second quarter of 2021 and an increase of 54.7% from the first quarter of 2022. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB2,267.0 million (US$338.5 million) in the second quarter of 2022, representing an increase of 575.1% from the second quarter of 2021 and an increase of 73.1% from the first quarter of 2022.

  • Net loss attributable to NIO’s ordinary shareholders was RMB2,745.0 million (US$409.8 million) in the second quarter of 2022, representing an increase of 316.4% from the second quarter of 2021 and an increase of 50.4% from the first quarter of 2022. 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 RMB2,185.6 million (US$326.3 million) in the second quarter of 2022, representing an increase of 551.1% from the second quarter of 2021 and an increase of 70.1% from the first quarter of 2022.

  • Basic and diluted net loss per Ordinary Share/American Depositary Share (ADS)iii were both RMB1.68 (US$0.25) in the second quarter of 2022, compared with RMB0.42 in the second quarter of 2021 and RMB1.12 in the first quarter of 2022. 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 RMB1.34 (US$0.20), compared with RMB0.21 in the second quarter of 2021 and RMB0.79 in the first quarter of 2022.

  • Cash and cash equivalents, restricted cash and short-term investment were RMB54.4 billion (US$8.1 billion) as of June 30, 2022.

Key Financial Results

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

 

 

2022 Q2

2022 Q1

 

2021 Q2

% Changeiv

 

 

 

 

 

QoQ

YoY

Vehicle Sales

9,570.8

9,244.0

 

7,911.8

3.5%

21.0%

Vehicle Margin

16.7%

18.1%

 

20.3%

-140bp

-360bp

Total Revenues

10,292.4

9,910.6

 

8,448.0

3.9%

21.8%

Gross Profit

1,340.3

1,446.8

 

1,573.9

-7.4%

-14.8%

Gross Margin

13.0%

14.6%

 

18.6%

-160bp

-560bp

Loss from Operations

(2,845.6)

(2,188.7)

 

(763.3)

30.0%

272.8%

Adjusted Loss from Operations (non-GAAP)

(2,355.1)

(1,715.6)

 

(511.9)

37.3%

360.1%

Net Loss

(2,757.5)

(1,782.7)

 

(587.2)

54.7%

369.6%

Adjusted Net Loss (non-GAAP)

(2,267.0)

(1,309.6)

 

(335.8)

73.1%

575.1%

Net Loss Attributable to Ordinary Shareholders

(2,745.0)

(1,825.0)

 

(659.3)

50.4%

316.4%

Net Loss per Ordinary Share/ADS-Basic and Diluted

(1.68)

(1.12)

 

(0.42)

50.0%

300.0%

Adjusted Net Loss per Ordinary Share/ADS-Basic and Diluted (non-GAAP)

(1.34)

(0.79)

 

(0.21)

69.6%

538.1%


Recent Developments

Deliveries in July and August 2022

  • NIO delivered 10,052 vehicles in July 2022 and 10,677 vehicles in August 2022. As of August 31, 2022, cumulative deliveries of the ES8, ES6, EC6, and ET7 reached 238,626 vehicles.

  • In August, the production and delivery started to ramp up steadily for the ES7, a mid-large five-seater premium smart electric SUV 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," said William Bin Li, founder, chairman and chief executive 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 financial 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 in the second quarter of 2022 were RMB10,292.4 million (US$1,536.6 million), representing an increase of 21.8% from the second quarter of 2021 and an increase of 3.9% from the first quarter of 2022.

  • Vehicle sales in the second quarter of 2022 were RMB9,570.8 million (US$1,428.9 million), representing an increase of 21.0% from the second quarter of 2021 and an increase of 3.5% from the first quarter of 2022. The increase in vehicle sales over the second quarter of 2021 was mainly attributed to higher deliveries. The increase in vehicle sales over the first quarter of 2022 was mainly driven by higher average selling price.

  • Other sales in the second quarter of 2022 were RMB721.5 million (US$107.7 million), representing an increase of 34.6% from the second quarter of 2021 and an increase of 8.2% from the first quarter of 2022. The increase in other sales over the second quarter of 2021 was mainly attributed to the increased revenue derived from auto financing services, sales of service and energy packages, and sales of used car. The increase in other sales over the first quarter of 2022 was mainly attributed to the increased revenue derived from sales of used car and auto financing services.

Cost of Sales and Gross Margin

  • Cost of sales in the second quarter of 2022 was RMB8,952.1 million (US$1,336.5 million), representing an increase of 30.2% from the second quarter of 2021 and an increase of 5.8% from the first quarter of 2022. The increase in cost of sales over the second quarter of 2021 was mainly driven by the increase of delivery volume and higher material cost per vehicle in the second quarter of 2022. The increase in cost of sales over the first quarter of 2022 was attributed to the higher material cost per vehicle.

  • Gross Profit in the second quarter of 2022 was RMB1,340.3 million (US$200.1 million), representing a decrease of 14.8% from the second quarter of 2021 and a decrease of 7.4% from the first quarter of 2022.

  • Gross margin in the second quarter of 2022 was 13.0%, compared with 18.6% in the second quarter of 2021 and 14.6% in the first quarter of 2022. The decrease of gross margin over the second quarter of 2021 was attributed to the decrease of vehicle margin and the reduction in other sales margin resulting from the expanded investment in power and service network. The decrease of gross margin over the first quarter of 2022 was mainly attributed to the decrease of vehicle margin.

  • Vehicle margin in the second quarter of 2022 was 16.7%, compared with 20.3% in the second quarter of 2021 and 18.1% in the first quarter of 2022. The decrease of vehicle margin over the second quarter of 2021 and the first quarter of 2022 was mainly attributed to the increased battery cost per unit, which was partially offset by favorable changes in sales mix of the ET7.

Operating Expenses

  • Research and development expenses in the second quarter of 2022 were RMB2,149.5 million (US$320.9 million), representing an increase of 143.2% from the second quarter of 2021 and an increase of 22.0% from the first quarter of 2022. Excluding share-based compensation expenses (non-GAAP), research and development expenses were RMB1,873.6 million (US$279.7 million), representing an increase of 133.9% from the second quarter of 2021 and an increase of 23.7% from the first quarter of 2022. The increase in research and development expenses over the second quarter of 2021 and first quarter of 2022 was mainly attributed to the increased personnel costs in research and development functions as well as the incremental design and development costs for new products and technologies.

  • Selling, general and administrative expenses in the second quarter of 2022 were RMB2,282.5 million (US$340.8 million), representing an increase of 52.4% from the second quarter of 2021 and an increase of 13.3% from the first quarter of 2022. Excluding share-based compensation expenses (non-GAAP), selling, general and administrative expenses were RMB2,082.1 million (US$310.8 million), representing an increase of 55.7% from the second quarter of 2021 and an increase of 15.6% from the first quarter of 2022. The increase in selling, general and administrative expenses over the second quarter of 2021 was primarily due to the increase in personnel costs and costs related to sales and service network expansion. The increase in selling, general and administrative expenses over the first quarter of 2022 was mainly attributed to the increase in personnel costs and marketing and promotional expenses, including expenses related to the launch of the ES7.

Loss from Operations

  • Loss from operations in the second quarter of 2022 was RMB2,845.6 million (US$424.8 million), representing an increase of 272.8% from the second quarter of 2021 and an increase of 30.0% from the first quarter of 2022. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB2,355.1 million (US$351.6 million) in the second quarter of 2022, representing an increase of 360.1% from the second quarter of 2021 and an increase of 37.3% from the first quarter of 2022.

Share-based Compensation Expenses

  • Share-based compensation expenses in the second quarter of 2022 were RMB490.5 million (US$73.2 million), representing an increase of 95.1% from the second quarter of 2021 and an increase of 3.7% from the first quarter of 2022. The increase in share-based compensation expenses over the second quarter of 2021 was primarily attributed to the grant of options and restricted shares on a continued basis. Share-based compensation remained relatively stable compared with the first quarter of 2022.

Net Loss and Earnings Per Share

  • Net loss in the second quarter of 2022 was RMB2,757.5 million (US$411.7 million), representing an increase of 369.6% from the second quarter of 2021 and an increase of 54.7% from the first quarter of 2022. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB2,267.0 million (US$338.5 million) in the second quarter of 2022, representing an increase of 575.1% from the second quarter of 2021 and an increase of 73.1% from the first quarter of 2022.

  • Net loss attributable to NIO’s ordinary shareholders in the second quarter of 2022 was RMB 2,745.0 million (US$409.8 million), representing an increase of 316.4% from the second quarter of 2021 and an increase of 50.4% from the first quarter of 2022. Excluding share-based compensation expenses, adjusted net loss attributable to NIO’s ordinary shareholders (non-GAAP) was RMB2,185.6 million (US$326.3 million) in the second quarter of 2022.

  • Basic and diluted net loss per Ordinary Share/ADS in the second quarter of 2022 were both RMB1.68 (US$0.25), compared with RMB0.42 in the second quarter of 2021 and RMB1.12 in the first quarter of 2022. 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 RMB1.34 (US$0.20), compared with RMB0.21 in the second quarter of 2021 and RMB0.79 in the first quarter of 2022.

Balance Sheets

  • Balance of cash and cash equivalents, restricted cash and short-term investment 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 vehicles to be between 31,000 and 33,000 vehicles, representing an increase of approximately 26.8% to 35.0% from the same quarter of 2021.

  • Total revenues to be between RMB12,845 million (US$1,918 million) and RMB13,598 million (US$2,030 million), representing an increase of approximately 31.0% to 38.7% from the same quarter of 2021.

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

The Company’s management will host an earnings conference call 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 live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.nio.com/news-events/events.

For participants who wish to join the conference using dial-in numbers, please register in advance using the link provided below and dial in 10 minutes prior to the call. Dial-in numbers, passcode and unique access PIN would be provided upon registering.

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

A replay of the conference call will be accessible by phone at the following numbers, until September 14, 2022:

United States:

+1-855-883-1031

Hong Kong, China:

+852-800-930-639

Mainland, China:

+86-400-1209-216

Singapore:

+65-800-1013-223

International:

+61-7-3107-6325

Replay PIN:

10024719


About NIO Inc.

NIO Inc. is a pioneer and a leading company in the premium smart electric vehicle market. Founded in November 2014, NIO’s mission is to shape a joyful lifestyle. NIO aims to build a community starting with smart electric vehicles to share joy and grow together with users. NIO designs, develops, jointly manufactures and sells premium smart electric vehicles, driving innovations in next-generation technologies in autonomous driving, digital technologies, electric powertrains and batteries. NIO differentiates itself through its continuous technological breakthroughs and innovations, such as its industry-leading battery swapping technologies, Battery as a Service, or BaaS, as well as its proprietary autonomous driving technologies and Autonomous Driving as a Service, or ADaaS. NIO’s product portfolio consists of the ES8, a six- or seven-seater flagship premium smart electric SUV, the ES7, a mid-large five-seater premium smart electric SUV, the ES6, a five-seater high-performance premium smart electric SUV, the EC6, a five-seater premium smart electric coupe SUV, the ET7, a flagship premium smart electric sedan, and the ET5, a mid-size premium smart electric sedan.

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. NIO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in announcements, circulars or other publications made on the websites of each of The Stock Exchange of Hong Kong Limited (the “SEHK”) and the Singapore Exchange Securities Trading Limited (the “SGX-ST”), 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 ensure and expand manufacturing capacities including establishing and maintaining partnerships with third parties; its ability to provide convenient and comprehensive power solutions to its customers; the viability, growth potential and prospects of the newly introduced BaaS and ADaaS; its ability to improve the technologies or develop alternative technologies in meeting evolving market demand and industry development; NIO’s ability to satisfy the mandated safety standards relating to motor vehicles; its ability to secure supply of raw materials or other components used in its vehicles; its ability to secure sufficient reservations and sales of the ES8, ES7, ES6, EC6, ET7 and ET5; its ability to control costs associated with its operations; its ability to build the 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 U.S. Securities and Exchange Commission and the announcements and filings on the websites of each of the SEHK and SGX-ST. 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. The Company defines 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) and adjusted net loss (non-GAAP) as cost of sales, research and development expenses, selling, general and administrative expenses, loss from operations and net loss excluding share-based compensation expenses. The Company defines 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) as net loss attributable to ordinary shareholders, basic and diluted net loss per share and basic and diluted net loss per ADS excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value. By excluding the impact of share-based compensation expenses 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 RMB6.6981 to US$1.00, the noon buying rate in effect on June 30, 2022 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.

Investor Relations
ir@nio.com

Media Relations

global.press@nio.com

Source: NIO


NIO INC.

Unaudited Consolidated Balance Sheets

(All amounts in thousands)

 

 

As of

 

December 31, 2021

 

June 30, 2022

 

June 30, 2022

 

RMB

 

RMB

 

US$

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

15,333,719

 

24,513,677

 

3,659,796

Restricted cash

2,994,408

 

3,790,113

 

565,849

Short-term investments

37,057,554

 

26,091,241

 

3,895,320

Trade and notes receivable

2,797,805

 

3,487,559

 

520,679

Amounts due from related parties

1,551,334

 

1,213,507

 

181,172

Inventory

2,056,352

 

3,360,593

 

501,723

Prepayments and other current assets

1,850,143

 

2,344,406

 

350,010

Total current assets

63,641,315

 

64,801,096

 

9,674,549

Non-current assets:

 

 

 

 

 

Long-term restricted cash

46,437

 

58,356

 

8,712

Property, plant and equipment, net

7,399,516

 

9,731,791

 

1,452,918

Land use rights, net

199,121

 

215,255

 

32,137

Long-term investments

3,059,383

 

4,418,184

 

659,618

Right-of-use assets - operating lease

2,988,374

 

7,940,191

 

1,185,439

Other non-current assets

5,549,455

 

6,738,675

 

1,006,058

Total non-current assets

19,242,286

 

29,102,452

 

4,344,882

Total assets

82,883,601

 

93,903,548

 

14,019,431

LIABILITIES

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Short-term borrowings

5,230,000

 

6,115,000

 

912,945

Trade and notes payable

12,638,991

 

16,232,628

 

2,423,468

Amounts due to related parties

687,200

 

522,691

 

78,036

Taxes payable

627,794

 

355,632

 

53,094

Current portion of operating lease liabilities

744,561

 

1,042,370

 

155,622

Current portion of long-term borrowings

2,067,962

 

2,062,616

 

307,940

Accruals and other liabilities

7,201,644

 

8,230,570

 

1,228,793

Total current liabilities

29,198,152

 

34,561,507

 

5,159,898

Non-current liabilities:

 

 

 

 

 

Long-term borrowings

9,739,176

 

12,161,493

 

1,815,663

Non-current operating lease liabilities

2,317,193

 

7,055,535

 

1,053,364

Deferred tax liabilities

25,199

 

208,428

 

31,118

Other non-current liabilities

3,540,458

 

4,217,344

 

629,633

Total non-current liabilities

15,622,026

 

23,642,800

 

3,529,778

Total liabilities

44,820,178

 

58,204,307

 

8,689,676

 

 

 

 

 

 


NIO INC.

Unaudited Consolidated Balance Sheets

(All amounts in thousands)

 

 

As of

 

December 31, 2021

 

June 30, 2022

 

June 30, 2022

 

RMB

 

RMB

 

US$

MEZZANINE EQUITY

 

 

 

 

 

Redeemable non-controlling interests

3,277,866

 

3,413,540

 

509,628

Total mezzanine equity

3,277,866

 

3,413,540

 

509,628

SHAREHOLDERS’ EQUITY

 

 

 

 

 

Total NIO Inc. shareholders’ equity

34,709,924

 

32,190,572

 

4,805,925

Non-controlling interests

75,633

 

95,129

 

14,202

Total shareholders’ equity

34,785,557

 

32,285,701

 

4,820,127

Total liabilities, mezzanine equity and shareholders’ equity

82,883,601

 

93,903,548

 

14,019,431

 

 

 

 

 

 


NIO INC.

Unaudited Consolidated Statements of Comprehensive Loss

(All amounts in thousands, except for share and per share data)

 

 

Three Months Ended

 

June 30, 2021

 

March 31, 2022

 

June 30, 2022

 

June 30, 2022

 

RMB

RMB

RMB

US$

Revenues:

 

 

 

 

Vehicle sales

7,911,813

 

 

9,244,014

 

 

9,570,842

 

 

1,428,889

 

Other sales

536,234

 

 

666,574

 

 

721,522

 

 

107,720

 

Total revenues

8,448,047

 

 

9,910,588

 

 

10,292,364

 

 

1,536,609

 

Cost of sales:

 

 

 

 

Vehicle sales

(6,308,001

)

 

(7,567,550

)

 

(7,976,625

)

 

(1,190,879

)

Other sales

(566,125

)

 

(896,199

)

 

(975,436

)

 

(145,629

)

Total cost of sales

(6,874,126

)

 

(8,463,749

)

 

(8,952,061

)

 

(1,336,508

)

Gross profit

1,573,921

 

 

1,446,839

 

 

1,340,303

 

 

200,101

 

Operating expenses:

 

 

 

 

Research and development

(883,666

)

 

(1,761,687

)

 

(2,149,479

)

 

(320,909

)

Selling, general and administrative

(1,497,760

)

 

(2,014,804

)

 

(2,282,461

)

 

(340,762

)

Other operating income

44,182

 

 

140,987

 

 

246,077

 

 

36,738

 

Total operating expenses

(2,337,244

)

 

(3,635,504

)

 

(4,185,863

)

 

(624,933

)

Loss from operations

(763,323

)

 

(2,188,665

)

 

(2,845,560

)

 

(424,832

)

Interest and investment income

193,034

 

 

400,688

 

 

292,863

 

 

43,723

 

Interest expenses

(60,527

)

 

(77,339

)

 

(64,712

)

 

(9,661

)

Share of (loss)/income of equity investees

(3,450

)

 

26,229

 

 

48,053

 

 

7,174

 

Other income/(losses), net

48,907

 

 

86,886

 

 

(189,955

)

 

(28,360

)

Loss before income tax expense

(585,359

)

 

(1,752,201

)

 

(2,759,311

)

 

(411,956

)

Income tax (expense)/benefit

(1,811

)

 

(30,459

)

 

1,791

 

 

267

 

Net loss

(587,170

)

 

(1,782,660

)

 

(2,757,520

)

 

(411,689

)

Accretion on redeemable non-controlling interests to redemption value

(72,168

)

 

(66,775

)

 

(68,899

)

 

(10,286

)

Net loss attributable to non-controlling interests

61

 

 

24,397

 

 

81,411

 

 

12,154

 

Net loss attributable to ordinary shareholders of NIO Inc.

(659,277

)

 

(1,825,038

)

 

(2,745,008

)

 

(409,821

)

 

 

 

 

 

Net loss

(587,170

)

 

(1,782,660

)

 

(2,757,520

)

 

(411,689

)

Other comprehensive (loss)/income

 

 

 

 

Change in unrealized gains related to available-for-sale debt securities, net of tax

 

 

743,103

 

 

(4,999

)

 

(746

)

Change in unrealized losses on cash flow hedges

 

 

 

 

(20

)

 

(3

)

Foreign currency translation adjustment, net of nil tax

(114,327

)

 

(38,879

)

 

490,549

 

 

73,237

 

Total other comprehensive (loss)/income

(114,327

)

 

704,224

 

 

485,530

 

 

72,488

 

Total comprehensive loss

(701,497

)

 

(1,078,436

)

 

(2,271,990

)

 

(339,201

)


Accretion on redeemable non-controlling interests to redemption value

(72,168

)

 

(66,775

)

 

(68,899

)

 

(10,286

)

Net loss attributable to non-controlling interests

61

 

 

24,397

 

 

81,411

 

 

12,154

 

Other comprehensive income attributable to non-controlling interests

 

 

(150,141

)

 

 

 

 

Comprehensive loss attributable to ordinary shareholders of NIO Inc.

(773,604

)

 

(1,270,955

)

 

(2,259,478

)

 

(337,333

)


Weighted average number of ordinary shares used in computing net loss per share

 

 

 

 

Basic and diluted

1,563,893,630

 

 

1,624,805,030

 

 

1,632,803,993

 

 

1,632,803,993

 

Net loss per share attributable to ordinary shareholders

 

 

 

 

Basic and diluted

(0.42

)

 

(1.12

)

 

(1.68

)

 

(0.25

)

Weighted average number of ADS used in computing net loss per share

 

 

 

 

Basic and diluted

1,563,893,630

 

 

1,624,805,030

 

 

1,632,803,993

 

 

1,632,803,993

 

Net loss per ADS attributable to ordinary shareholders

 

 

 

 

Basic and diluted

(0.42

)

 

(1.12

)

 

(1.68

)

 

(0.25

)


NIO INC.

Unaudited Consolidated Statements of Comprehensive Loss

(All amounts in thousands, except for share and per share data)

 

 

Six Months Ended

 

June 30, 2021

 

June 30, 2022

 

June 30, 2022

 

RMB

RMB

US$

Revenues:

 

 

 

Vehicle sales

15,317,600

 

 

18,814,856

 

 

2,808,984

 

Other sales

1,112,780

 

 

1,388,096

 

 

207,237

 

Total revenues

16,430,380

 

 

20,202,952

 

 

3,016,221

 

Cost of sales:

 

 

 

Vehicle sales

(12,146,943

)

 

(15,544,175

)

 

(2,320,684

)

Other sales

(1,154,710

)

 

(1,871,635

)

 

(279,428

)

Total cost of sales

(13,301,653

)

 

(17,415,810

)

 

(2,600,112

)

Gross profit

3,128,727

 

 

2,787,142

 

 

416,109

 

Operating expenses:

 

 

 

Research and development

(1,570,214

)

 

(3,911,166

)

 

(583,922

)

Selling, general and administrative

(2,695,008

)

 

(4,297,265

)

 

(641,565

)

Other operating income

77,248

 

 

387,064

 

 

57,787

 

Total operating expenses

(4,187,974

)

 

(7,821,367

)

 

(1,167,700

)

Loss from operations

(1,059,247

)

 

(5,034,225

)

 

(751,591

)

Interest and investment income

312,652

 

 

693,551

 

 

103,544

 

Interest expenses

(484,283

)

 

(142,051

)

 

(21,208

)

Share of income of equity investees

99,838

 

 

74,282

 

 

11,090

 

Other income/(losses), net

98,590

 

 

(103,069

)

 

(15,388

)

Loss before income tax expense

(1,032,450

)

 

(4,511,512

)

 

(673,553

)

Income tax expense

(5,768

)

 

(28,668

)

 

(4,280

)

Net loss

(1,038,218

)

 

(4,540,180

)

 

(677,833

)

Accretion on redeemable non-controlling interests to redemption value

(4,496,164

)

 

(135,674

)

 

(20,256

)

Net loss attributable to non-controlling interests

145

 

 

105,808

 

 

15,797

 

Net loss attributable to ordinary shareholders of NIO Inc.

(5,534,237

)

 

(4,570,046

)

 

(682,292

)

 

 

 

 

Net loss

(1,038,218

)

 

(4,540,180

)

 

(677,833

)

Other comprehensive (loss)/income

 

 

 

Change in unrealized gains related to available-for-sale debt securities, net of tax

 

 

738,104

 

 

110,196

 

Change in unrealized losses on cash flow hedges

 

 

(20

)

 

(3

)

Foreign currency translation adjustment, net of nil tax

(188,856

)

 

451,670

 

 

67,433

 

Total other comprehensive (loss)/income

(188,856

)

 

1,189,754

 

 

177,626

 

Total comprehensive loss

(1,227,074

)

 

(3,350,426

)

 

(500,207

)


Accretion on redeemable non-controlling interests to redemption value

(4,496,164

)

 

(135,674

)

 

(20,256

)

Net loss attributable to non-controlling interests

145

 

 

105,808

 

 

15,797

 

Other comprehensive income attributable to non-controlling interests

 

 

(150,141

)

 

(22,415

)

Comprehensive loss attributable to ordinary shareholders of NIO Inc.

(5,723,093

)

 

(3,530,433

)

 

(527,081

)


Weighted average number of ordinary shares used in computing net loss per share

 

 

 

Basic and diluted

1,557,911,888

 

 

1,631,602,522

 

 

1,631,602,522

 

Net loss per share attributable to ordinary shareholders

 

 

 

Basic and diluted

(3.55

)

 

(2.80

)

 

(0.42

)

Weighted average number of ADS used in computing net loss per share

 

 

 

Basic and diluted

1,557,911,888

 

 

1,631,602,522

 

 

1,631,602,522

 

Net loss per ADS attributable to ordinary shareholders

 

 

 

Basic and diluted

(3.55

)

 

(2.80

)

 

(0.42

)


NIO INC.

Unaudited Reconciliation of GAAP and Non-GAAP Results

(All amounts in thousands, except for share and per share data)

 

 

Three Months Ended June 30, 2022

 

GAAP
Result

 

Share-based
compensation

 

Accretion on redeemable
non-controlling interests
to redemption value

 

Adjusted
Result
(Non-GAAP)

 

RMB

RMB

 

RMB

 

RMB

Cost of sales

(8,952,061

)

 

14,227

 

 

(8,937,834

)

Research and development expenses

(2,149,479

)

 

275,894

 

 

(1,873,585

)

Selling, general and administrative expenses

(2,282,461

)

 

200,382

 

 

(2,082,079

)

Total

(13,384,001

)

 

490,503

 

 

(12,893,498

)

Loss from operations

(2,845,560

)

 

490,503

 

 

(2,355,057

)

Net loss

(2,757,520

)

 

490,503

 

 

(2,267,017

)

Net loss attributable to ordinary shareholders of NIO Inc.

(2,745,008

)

 

490,503

 

68,899

 

(2,185,606

)

Net loss per share attributable to ordinary shareholders, basic and diluted (RMB)

(1.68

)

 

0.30

 

0.04

 

(1.34

)

Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)

(1.68

)

 

0.30

 

0.04

 

(1.34

)

Net loss per ADS attributable to ordinary shareholders, basic and diluted (USD)

(0.25

)

 

0.30

 

0.01

 

(0.20

)


 

Three Months Ended March 31, 2022

 

GAAP
Result

 

Share-based
compensation

 

Accretion on redeemable
non-controlling interests
to redemption value

 

Adjusted
Result
(Non-GAAP)

 

RMB

RMB

 

RMB

 

RMB

Cost of sales

(8,463,749

)

 

12,125

 

 

(8,451,624

)

Research and development expenses

(1,761,687

)

 

247,621

 

 

(1,514,066

)

Selling, general and administrative expenses

(2,014,804

)

 

213,293

 

 

(1,801,511

)

Total

(12,240,240

)

 

473,039

 

 

(11,767,201

)

Loss from operations

(2,188,665

)

 

473,039

 

 

(1,715,626

)

Net loss

(1,782,660

)

 

473,039

 

 

(1,309,621

)

Net loss attributable to ordinary shareholders of NIO Inc.

(1,825,038

)

 

473,039

 

66,775

 

(1,285,224

)

Net loss per share attributable to ordinary shareholders, basic and diluted (RMB)

(1.12

)

 

0.29

 

0.04

 

(0.79

)

Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)

(1.12

 

 

0.29

 

0.04

 

(0.79

)


 

Three Months Ended June 30, 2021

 

GAAP
Result

 

Share-based
compensation

 

Accretion on redeemable
non-controlling interests
to redemption value

 

Adjusted
Result
(Non-GAAP)

 

RMB

RMB

 

RMB

 

RMB

Cost of sales

(6,874,126

)

 

8,393

 

 

(6,865,733

)

Research and development expenses

(883,666

)

 

82,772

 

 

(800,894

)

Selling, general and administrative expenses

(1,497,760

)

 

160,215

 

 

(1,337,545

)

Total

(9,255,552

)

 

251,380

 

 

(9,004,172

)

Loss from operations

(763,323

)

 

251,380

 

 

(511,943

)

Net loss

(587,170

)

 

251,380

 

 

(335,790

)

Net loss attributable to ordinary shareholders of NIO Inc.

(659,277

)

 

251,380

 

72,168

 

(335,729

)

Net loss per share attributable to ordinary shareholders, basic and diluted (RMB)

(0.42

)

 

0.16

 

0.05

 

(0.21

)

Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)

(0.42

)

 

0.16

 

0.05

 

(0.21

)


 

Six Months Ended June 30, 2022

 

GAAP
Result

 

Share-based
compensation

 

Accretion on redeemable
non-controlling interests
to redemption value

 

Adjusted
Result
(Non-GAAP)

 

RMB

RMB

 

RMB

 

RMB

Cost of sales

(17,415,810

)

 

26,352

 

 

(17,389,458

)

Research and development expenses

(3,911,166

)

 

523,515

 

 

(3,387,651

)

Selling, general and administrative expenses

(4,297,265

)

 

413,675

 

 

(3,883,590

)

Total

(25,624,241

)

 

963,542

 

 

(24,660,699

)

Loss from operations

(5,034,225

)

 

963,542

 

 

(4,070,683

)

Net loss

(4,540,180

)

 

963,542

 

 

(3,576,638

)

Net loss attributable to ordinary shareholders of NIO Inc.

(4,570,046

)

 

963,542

 

135,674

 

(3,470,830

)

Net loss per share attributable to ordinary shareholders, basic and diluted (RMB)

(2.80

)

 

0.59

 

0.08

 

(2.13

)

Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)

(2.80

)

 

0.59

 

0.08

 

(2.13

)

Net loss per ADS attributable to ordinary shareholders, basic and diluted (USD)

(0.42

)

 

0.09

 

0.01

 

(0.32

)


 

Six Months Ended June 30, 2021

 

GAAP
Result

 

Share-based compensation

 

Accretion on redeemable non-controlling interests to redemption value

 

Adjusted
Result
(Non-GAAP)

 

RMB

RMB

 

RMB

 

RMB

Cost of sales

(13,301,653

)

 

12,044

 

 

(13,289,609

)

Research and development expenses

(1,570,214

)

 

119,287

 

 

(1,450,927

)

Selling, general and administrative expenses

(2,695,008

)

 

216,529

 

 

(2,478,479

)

Total

(17,566,875

)

 

347,860

 

 

(17,219,015

)

Loss from operations

(1,059,247

)

 

347,860

 

 

(711,387

)

Net loss

(1,038,218

)

 

347,860

 

 

(690,358

)

Net loss attributable to ordinary shareholders of NIO Inc.

(5,534,237

)

 

347,860

 

4,496,164

 

(690,213

)

Net loss per share attributable to ordinary shareholders, basic and diluted (RMB)

(3.55

)

 

0.22

 

2.89

 

(0.44

)

Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)

(3.55

)

 

0.22

 

2.89

 

(0.44

)

_____________________________

i All translations from RMB to USD for the three months and six months ended June 30, 2022 were made at the rate of RMB6.6981 to US$1.00, the noon buying rate in effect on June 30, 2022 in the H.10 statistical release of the Federal Reserve Board.

ii Vehicle margin is the margin of new vehicle sales, which is calculated based on revenues and cost of sales derived from new vehicle sales only.

iii Each ADS represents one ordinary share.

iv Except for gross margin and vehicle margin, where absolute changes instead of percentage changes are calculated.