Business

NIO Inc. reports unaudited first quarter 2019 financial results




<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Quarterly total revenue reached RMB1,631.2 Millions
Quarterly deliveries of ES8 reached 3,989 cars "data-response time =" 11 "> Quarterly total revenue reached RMB1,631.2 million (USD 243.1 million)
] Quarterly deliveries of ES8 reached 3,989 cars

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SHANGHAI, China, May 28, 201[ads1]9 (GLOBE NEWSWIRE) – NIO Inc. ("NIO" or "Company") ( NIO ), a pioneer in China's premium electric vehicle market, today announced its unaudited first quarter financial results ended March 31 2019. "SHIOHAI, China, May 28, 2019 (GLOBE NEWSWIRE) – NIO Inc. (" NIO "or" Company ") (NIO), a pioneer in China's premier electric car market, today announced its unaudited financial results for the first time quarter ended March 31, 2019.

<p class = "canvas-textile-textile Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Operational highlights for the first quarter of 2019 & nbsp; & nbsp; & nbsp; "

  • First Quarter Operational Highlights 2019

    • Deliveries of ES8 reached 3,989 in the first quarter of 2019, compared to 7,980 vehicles delivered in the fourth quarter 2018 Q4 2018 Q3 2018 Q2 2019 Q1 2019 Q1 2018 Q4 [ [8659018] 3268 798 3268 798 798 [patomcanvas-textMb(10em)Mb(0)-smMt(08em)-sm"type="text"content=" Financial highlights for the first quarter of 2019 "data-response time =" 18 "> First Quarter Financial Highlights 2019

      • Vehicle sales were RMB1,535.2 million $ 228.8 million in the first quarter of 2019, as reprise
      • Vehicle margin 2 was negative 7.2%, compared to positive 3.7% in fourth quarter 2018.
      • Total revenue was RMB1.631.2 million in the first quarter of 2019, representing a 52.5% decrease from the fourth quarter of 2018.
      • Gross margin was negative 13.4% compared to positive 0.4% in fourth Q1 2018. Operating loss was RMB2,617.7 million (US $ 390.0 million) in the first quarter of 2019, a decrease of 24.1% from Q4 2018 and an increase of 78.8% from the same period in 2018. Excluding share-based compensation costs, the adjusted loss from operations (non-GAAP) was RMB2 498.1 million (US $ 372.2 million) in the first quarter of 2019, a decrease of 24, 4% from the fourth quarter of 2018 and a 75.7% increase from the same period in 2018.
      • Net loss was RMB2,623.6 million in the first quarter 20 19, which represents a reduction of 25.1% from the fourth quarter of 2018 and an increase of 71.4% from the same period in 2018. Without a share-based compensation cost, Adjusted net loss (non-GAAP) was RMB2 504.0 million (USD NOK 373.1 million in the first quarter of 2019, a decrease of 25.5% from the fourth quarter of 2018 and an increase of 68.2% from the same period in 2018. [19659045] Net loss due to NIO's ordinary shareholders was RMB2 652.0 million (US $ 395.2 million) in the first quarter of 2019, a decrease of 24.6% from the fourth quarter of 2018 and a decrease of 32.8% from the same 2018. Without a share-based compensation cost and reimbursement of redeemable minority interests at redemption value, adjusted net loss due to NIO's ordinary shareholders (non-GAAP) RMB2 501.2 million (US $ 372.7 million).
      • Basic and Diluted Net Losses on US Securities Shares (ADS) 3 were both RMB2.56 (US $ 0.38) in the first quarter of 2019. Excluding Share-Based Compensation Costs and Accumulation on Redemption Shares Redemption Value, adjusted basic and diluted net losses per ADS (non-GAAP) were both RMB2.42 (US $ 0.36).
      • Cash and cash equivalents, limited cash and short-term investment were RMB7,536.5 million (US $ 1,123.0 million) as of March 31, 2019.
      2019 Q1 2018 Q4 2018 Q1 ] 19659069]
      QoQ YoY
      Vehicle Sales 1,535.2 3,381.2 -54.6% ]
      Vehicle Margin -7.2% 3.7% -1.087 bp
      Total revenue 1,631, 2 [3,435,6] -52.5% – Gross margin -13.4% 0 , 4% -1,384 bp
      Loss from operations ] (2,617.7) (3,446.9) (1,463.9 ) [1 9659077] -24.1% 78.8%
      Adjusted loss from operations (non-GAAP) (2,498.1) [19659047] (3.305.2) [244% [2.659043] (2.693.6)
      3,503.0) [1,531.0] -25.1 (3,361.3) (1,488.9) -25, 5% 71.4%
      Adjusted net loss 68.2%
      Net loss attributable to ordinary shareholders (2,652,0) (3,516.5) (3,943.9) -24.6% -32.8%
      Net loss per ordinary part basic and diluted (2.56) ] (3.37) (150.96) -24.0%
      ] -98.3%
      Adjusted net loss per common part basic and 19659077]
      Diluted (non-GAAP) (2.42) 19659047] (3.20) (56.67) -24, 4% -95.7%

      <p class = "canvas-atom texttext Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "[19659005] Recent developments "data-reactid =" 31 "> Recent developments

      <p class =" canvas-textile textile Mb (1.0em) Mb Deliveries in ES88 Deliveries in April 2019 "data-reactid =" 32 "> Deliveries in April 2019

      • in April 2019 there were 1,124 cars, reflecting a larger than expected slowdown in monthly deliveries, mainly due to the subsidy reduction on electric vehicles (EV) announced at the end of March, as well as the slowdown in macroeconomic conditions in China, which has been exacerbated by the trade war between the United States and China, especially in the automotive industry, where sales of wholesale passenger cars drive down about 15 % from year to January 2019, compared with the same period last year.

      <p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Frame agreement with Beijing E-Town International Investment and Development Co. Ltd. "data-response time =" 35 "> Agreement with Beijing E-Town International Investment and Development Co., Ltd.

      • In May, the company entered into a framework agreement with Beijing E-Town International Investment Development Co Ltd ("E-Town Capital"), an investment company headquartered in Beijing Economic-Technological Development Area (BDA). Under this agreement, the company will establish an enterprise, NIO China, in the Beijing Economic-Technological Development Area and contribute with certain businesses and assets to NIO China, while E-Town Capital will initially invest up to RMB10 billion through affiliates units or jointly with third parties in NIO China in exchange for a minority stake in NIO China. Furthermore, E-Town Capital is expected to help NIO China build or find third-party partners to build a new production facility for the company's next-generation platform 2.0 (NP2) vehicles. The parties continue to work for a final binding final agreement for this investment.

      <p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm Production arrangement of ES6

      • " "data-response time =" 38 " > Production arrangement by ES6

        • In April 2019, the company entered into a manufacturing collaboration agreement with Jianghuai Automobile Group Co., Ltd. or JAC for the production of ES6, which is a supplement to the agreement concluded by the company with JAC in May 2016. Following these agreements pay the company JAC production fee on a monthly basis per vehicle and compensate JAC for the operating losses for the first three-year period after the start of the ES8 production from April 10, 2018. The company can fund further investments in equipment at the Hefei plant in JAC for the production of ES6. [19659114] <p class = "canvas-atom canvas text Mb (1. 0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " New product development " data response = "41"> New product development

          • In April 2019, companies presented t a preview of ET7, the high-performance premium electric sedan, at the Shanghai Auto Show. Recently, the company decided to design and develop the ET series with the future NIO NP2 platform, our next-generation product platform with level 4 autonomous driving capabilities, and will provide an update on the launch of the ET series in the future. Meanwhile, the company plans to utilize the ES8 and ES6 platform technologies to create a new model design and expects to launch the third vehicle model by 2020.

          <p class = "canvas-text-text Mb (1.0em) [0459009] Update on GAC-NIO Joint Venture
          In April 2018, the company, along with NIO Capital, Guangqi New Energy Automobile Co., Ltd. and Guangzhou Automobile Group Co., Ltd., or GAC, established a joint venture company, GAC-NIO New Energy Vehicle Technology Co., Ltd. or GAC-NIO, mainly engaging in electric vehicles and sharing development, sales and services, William Li, NIO's founder, chairman, and managing director, also serves as head of the GAC-NIO. 2019, GAC-NIO announced its new brand, Hycan He Chuang, and plans to launch its first car model this year, expecting to work strategically with the GAC-NIO in a number of areas, including technologies, supply chains and series of vice-networks.
          & nbsp; & nbsp; & nbsp;
          CEO and CFO Comments "data-reactid =" 44 "> Update on GAC NIO Joint Venture
          In April 2018, the company established with NIO Capital, Guangqi New Energy Automobile Co., Ltd. and Guangzhou Automobile Group Co., Ltd or GAC, a joint venture company, GAC-NIO New Energy Vehicle Technology Co., Ltd., or GAC-NIO, mainly engage in electric vehicles and parts development, sales and services. NIO's founder, CEO and CEO, also serves as head of the GAC-NIO On May 20, 2019, GAC-NIO announced its new brand, Hycan He Chuang, and plans to launch its first vehicle model this year, expecting to work strategically with GAC-NIO in a number of areas, including technologies, supply chains and service networks.

          CEO and CFO Comments

          "We delivered 3,989 ES8s, the company's high-performing premium electricity Exclusive SUVs, in the first quarter of 2019, followed by 1,124 ES8s in April, total total deliveries to 16,461 vehicles as of April 30, 2019, said William Li, NIO's founder, CEO, and CEO. "We are delighted that in June, as planned, our second production model, ES6, will roll off the production line, a 5-seat high performance premium SUV, and the first deliveries to NIO users will begin in the same month. ES6 received broad-based positive feedback from the recent Shanghai Auto Show, and the early reviews from our ES6 test drive campaign launched in May brought good positive momentum to the moment, and we currently have over 12,000 ES6 pre-orders (refundable deposit orders), including over 5,000 pre-orders placed since Shanghai The Auto Show began five and a half weeks ago, and we are confident that as more and more new potential users begin to experience the ES6 hand, the vehicle's competitive features and price will appeal to an increasing number of premium car buyers. "

          <p class = "canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" Deliveries of ES8 in first quarter 2019 o Improved the company's expectations despite heads of EV subsidy reductions, reduced macroeconomic conditions, increased competition and seasonal factors around the Chinese New Year's perspective, "added Louis T. Hsieh, NIO's CFO." We look forward to the second quarter to expect even more challenging sales the environment and anticipate that the overall sequential demand and delivery will decrease, as competition continues to accelerate and the general car market in China remains silent. In this context, NIO focuses on expanding our ES6 nationwide and at the same time improving the furnace's all network utilization and operational efficiency. "& nbsp;
          " data-reactid = "46"> "Deliveries of ES8 in the first quarter of 2019 exceeded the company's expectations despite heads of EV subsidy reductions, reduced macroeconomic conditions, increased competition and seasonal factors around the Chinese New Year's perspective. "Louis T. Hsieh, NIO's Chief Financial Officer." We look forward to the second quarter, expecting an even more challenging sales environment and assuming overall demand and deliveries are shrinking as competition continues to accelerate and the overall car market in China remains silent. this background, the NIO focuses on expanding our ES6 nationwide while improving overall network utilization and operational efficiency. "

          <p class =" canvas-atom canvas text Mb (0-0) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Financial results for the first quarter of 2019 "data-response time =" 47 "> Fine Ncial results for the first quarter of 2019

          <p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – Sm Mt (0.8em) – Sm" Type = "Text Revenue Revenue Revenue " data- reactid = "48"> Revenue

          • Vehicle sales in the first quarter of 2019 were RMB1,535.2 million ($ 228.8 million) a decrease of 54.6% from the fourth quarter of 2018. Decline in vehicle sales in Q4 2018, accelerated delivery of ES8 in Q4 2018 is due to EV subsidy deduction in China in 2019 as seasonal downturns around Chinese New Year holiday in Q1 2019.
          • Other sales in Q1 2019 were RMB96.0 Million (US $ 14.3 million), an increase of 76.4% from the fourth quarter of 2018. The increase in other sales in the fourth quarter of 2018 was mainly attributable to an increase in revenue from NIO's life and services delivered in the first quarter of 2019. [19659135] Total revenue in the first quarter of 2019 was RMB1.631.2 million (USD 243.1 million ), which represents a decrease of 52.5% from the fourth quarter of 2018.

          <p class = "canvas-text-text-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Cost of sales and gross margin "data-response time =" 53 "> Cost of sales and gross margin

          • Sales price in first quarter 2019 was RMB1 850.5 million (US $ 275.7 million), representing a decline of 45.9% from the fourth quarter of 2018. The decline in sales costs in the fourth quarter of 2018 was the main driven by the decline in the delivery volume of ES8 in the first quarter of 2019.
          • Vehicle margin in the first quarter of 2019 was negative 7.2%, compared to 3.7% in the fourth quarter of 2018. The decline in vehicle margin was mainly driven by the decline in the delivery volume of ES8 in the first quarter of 2019.
          • Gross margin in the first quarter of 2019 was negative 13.4%, compared to positive 0.4% in the fourth quarter of 2018, mainly driven by decline one in the vehicle margin in the first quarter of 2019.

          <p class = "canvas-atom lerem text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Operating Costs & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; " R&D expenditure in the first quarter of 2019 was RMB1 078.4 million (USD 160.7 million) in the first quarter of 2018 and a decrease of 28.8% from the fourth quarter of 2018. Excluding equity-based compensation costs were adjusted R&D expenditure (non-GAAP) RMB1,046.2 million (USD 155.9 million), representing an increase of 52.7% from the first quarter of 2018 and a decrease of 30.0% from the fourth quarter of 2018. The decline in research and development expenses in the fourth quarter of 2018 is mainly due to the higher design and professional expenses in the fourth quarter of 2018 to support the frequent test, development phase of ES6, the company's 5-seat high-performance premium electric SUV launched in December 2018.

        • Selling, generally a Nd administrative cost in the first quarter of 2019 was RMB1 319.9 million (US $ 196.7 million), an increase of 71.5% from the first quarter of 2018 and a decrease of 32.2% from the fourth quarter of 2018. E Excluding share-based compensation costs, adjusted sales and administration costs (non-GAAP) were RMB1 234.1 million (USD 183.9 million), an increase of 67.6% from the first quarter of 2018 and a reduction of 32.4% from fourth quarter of 2018. The decline in sales, administration and administration costs in the fourth quarter of 2018 is mainly due to a decrease in marketing and marketing activities and expenses for outsourced professional services.

        <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Loss from operations "data-response time" "62"> Loss from operations

        • Loss from operations in the first quarter of 2019 was RMB2, NOK 617.7 million, corresponding to an increase of 78.8% from the first quarter of 2018 and A decrease of 24.1% from the fourth quarter of 2018. Excluding share-based compensation costs, adjusted operating profit (non-GAAP) was RMB2 498.1 million, corresponding to an increase of 75.7% from the first quarter of 2018 and a decrease of 24.4% from fourth quarter 2018.

        <p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Share-based compensation expenses "data-response time =" 65 "> Share-based compensation expenses

        • Share-based compensation costs in the first quarter of 2019 were RMB119.6 million (USD 17.8 million), which represents Enterprises reported an increase of 184.0% from the first quarter of 2018 and a decrease of 15.6% from the fourth quarter of 2018. The decrease in share-based compensation costs in the fourth quarter of 2018 is primarily due to a decrease in equity b

        <p class = "canvas -atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text Net loss and profit per share

        Net loss and gain per share "data response =" 68 "> Net loss and earnings per share

        • Net loss was RMB2,623.6 million (US $ 390.9 million) in the first quarter of 2019, an increase of 71.4% from the first quarter of 2018 and a decrease of 25.1% from the fourth quarter of 2018. Excluding equity-based compensation costs, adjusted net loss (non-GAAP) was RMB2 504.0 million (USD 373.1 million) in the first quarter of 2019, corresponding to an increase of 68.2% from the first quarter of 2018 and a decrease of 25.5% from the fourth quarter of 2018.
        • Net loss attributable to NIO's ordinary action Honor in the first quarter of 2019 was RMB2 652.0 million (US $ 395.2 million), a decrease of 32.8% from the first quarter of 2018 and a decrease of 24.6% from the fourth quarter of 2018. Excluding equity-based compensation costs and vesting of redeemable minority interests at redemption value was adjusted net loss due to NIO's ordinary shareholders (non-GAAP) RMB2 501.2 million (US $ 372.7 million).
        • Basic and diluted net losses per ADS in the first quarter of 2019 were both RMB2.56 (US $ 0.38). Excluding share-based compensation costs and subsidies on redeemable minority interests at redemption value, adjusted basic and diluted net losses per ADS (non-GAAP) were both RMB2.42 (US $ 0.36).

        <p class = "canvas -atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Balance sheet " data response time = "73"> Balance Sheet

        • Cash and cash equivalents, limited cash flow and short-term investment were RMB7,536.5 million (USD 1,123.0 million) as of March 31, 2019.
        • Company adopted 1 January 2019 ASC 842, Leases and used the additional transition method to initially apply this new lease standard at the date of adoption. Own assets and leasing obligations are recognized in the company's consolidated accounts.

        <p class = "lerret-tekstil-tekstil Mb (1.0em) Mb (0) – sm Mt (0.8em) – – 19659006]

        " data-response time = "77" > Business Outlook

        For second quarter 2019 The company expects:

        • Deliveries of vehicles should be between 2800 and 3,200 units, representing a decline of about 19.8% to 29.8% from first quarter of 2019. This view incorporates the planned deliveries of several hundred ES6 in June 2019.
        • Total revenues should be between RMB1,134 million and US $ 193 million, representing a decline of approx. 20.7% to 30.5% from the first quarter of 2019

        This business perspective reflects the company's current and preliminary view of the business situation and market conditions that may change.

        <p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Conference call " data response = "83"> Conference Call

        The management will hold a conference call at 8:00 am Eastern Time Tuesday, May 28, 2019 (8:00 pm Beijing May 28, 2019) to discuss financial performance and answer questions from investors and analysts. Listeners can access the call by calling:

        United States: + 1-845-675-0437
        International: + 65-6713-5090
        Hong Kong: + 852-3018-6771
        Conference ID: 1251815

        In addition, a live and archived webcast of the conference call will be available on the company's investor relations website at http: //ir.nio. com.

        A replay of the conference call will be available via telephone approx. two hours after the end of the life call by the following number, until June 5, 2019 08:59 East time:

        ] United States: + 1-646-254-3697
        International: + 61-2- 8199-0299
        Hong Kong: + 852-3051-2780
        Conference ID: 1251815

        <p class = "canvas-atom lerrettekst Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" [19659005] To NIO Inc. "data response =" 95 "> To NIO Inc.
        6 ]

        NIO Inc. is a pioneer in China's premium electric vehicle market. Founded in November 2014, the NIO's mission is to create a joyful lifestyle by providing first-class smart electric vehicles and being the best user. NIO designs, manufactures and sells smart and connected premium electric vehicles, runs innovations in next-generation technologies in connectivity, autonomous driving, and artificial intelligence. Redefining user experience, NIO provides comprehensive, convenient and innovative charging solutions and other user-centric services. NIO started delivering ES8, a 7-seat high performance premium SUV in China in June 2018, and its variant, the six-seat ES8, in March 2019. NIO officially launched the ES6, a 5-seat high-performance Premium Electric SUV, in December 2018, and plans to make the first batch of deliveries of ES6 in June 2019.

        <p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – Sm Mt 0.8em) – sm" type = "text" content = " Safe Harbor Statement " data-response time = "97"> Safe Harbor Statement

        This press release contains statements that may constitute "forward-looking "statements according to the" safe harbor "provisions of the US Judicial Reform Law of 1995. These forward-looking statements can be identified by terminology that" will "," expect, "" assumes, "" goals, "" future, "" purpose "," plans "," believe "," estimates "," likely "and similar statements. Among other things, Business Outlook and quotes from the management in this announcement, as well as NIO's strategic and operational plans, contain forward-looking statements. NIO may also submit written or oral forward-looking statements in its periodic reports to the US Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements by its officers, directors or third-party employees . Statements that are not historical facts, including statements about NIO's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risk and uncertainty. A number of factors may cause actual results to differ materially from those contained in forward-looking statements, including, but not limited to, the following: NIO's strategies; NIO's future business development, finances and operating profit; NIO's ability to develop and produce an adequate quality car and appeal to customers on a large and large scale, the ability to grow production in partnership with partners its ability to provide convenient charging solutions to our customers; its ability to meet the mandatory safety standards associated with motor vehicles its ability to ensure the supply of raw materials or other components used in our vehicles; its ability to secure adequate reservations and sales of ES8 and ES6; its ability to control costs associated with our business's 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 on these and other risks is included in NIO's filing with the SEC. All information provided in this press release is from the date of this press release and NIO undertakes no obligation to update any forward-looking statements, except as required by applicable law.

        <p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Non-GAAP Disclosure " data-response time = "99"> Non-GAAP Disclosure

        The company uses non-GAAP measures, such as adjusted sales cost (non-GAAP), adjusted research and development expenses (non-GAAP ), 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 the evaluation of operating results and for economic and operational decision purposes. By avoiding the impact of stock-based compensation costs, the company considers that the non-GAAP financial measures help identify the underlying trends in its business and increase the overall understanding of its past and future prospects. The company also believes that the non-GAAP financial measures provide greater visibility with respect to key metrics used by the company's management in its economic and operational decision-making process.

        The non-GAAP financial measures are not presented under the US 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 their financial information in their entirety and not rely on a single financial measure.

        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 entitled "Unaudited Reconciliation of GAAP and non-GAAP Results" set forth at the end of this press release.

        <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "[19659198] Exchange Rate "data response =" 104 "> Exchange Rate

        This announcement contains translations of certain renminbi amounts into US 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 RMB6,7112 to US $ 1.00, the noon buying rate in effect on March 29, 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.

        <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Statement Regarding Preliminary Unaudited Financial Information" data-reactid="106">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

        <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Contacts:" data-reactid="109">Contacts:

        <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="NIO Inc.
        Investor Relations
        Tel: +86-21-6908-3681
        Email: ir@nio.com" data-reactid="110">NIO Inc.
        Investor Relations
        Tel: +86-21-6908-3681
        Email: ir@nio.com

        <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Piacente Group, Inc.
        Brandi Piacente
        Tel: +1-212-481-20 50
        Email: nio@tpg-ir.com" data-reactid="111">The Piacente Group, Inc.
        Brandi Piacente
        Tel: +1-212-481-2050
        Email: nio@tpg-ir.com

        <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Ross Warner
        Tel: +86-10-5730-6201
        Email: nio@tpg-ir.com" data-reactid="112">Ross Warner
        Tel: +86-10-5730-6201
        Email: nio@tpg-ir.com

        <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Source: NIO

        " data-reactid="113">Source: NIO

        <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="NIO INC. " data-reactid="114">NIO INC.

        <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Consolidated Balance Sheets " data-reactid="115">Consoli dated Balance Sheets

        Amounts expressed in Renminbi (“RMB”), unless otherwise stated
        (in thousands, except for share and per share data)
          December 31, 2018
        March 31, 2019
        March 31, 2019
          (audited)
        (unaudited)
        (unaudited)
                  (US$)
        ASSETS          
        Current assets:          
        Cash and cash equivalents 3,133,847   4,956,114[19659247]  738,484
        Restricted cash 57,012   85,394   12,724
        Short-term investment 5,154,703  [19659323]2,495,000   371,767
        Trade receivable 756,508   1,021,422   152,197
        Amounts due from related parties 88,066   85,901   12,800
        Inventory 1,465,239   1,140,889   169,998
        Prepayments and other current assets 1,514,257   1,674,989   249,581
        Total current assets 12,169,632   11,459,709   1,707,551
                   
        Non-current assets:          
        Long-term restricted cash[19659247]33,528   20,196   3,009
        Property, plant and equipment, net 4,853,157   5,181,351   772,045[1 9659316]Intangible assets, net 3,470   3,008   448
        Land use rights, net 213,662   212,450   31,656
        Long-term investments 148,303   154,415   23,009
        Amounts due from related parties 7,970   7,970   1,188
        Right-of-use assets – operating lease   2,250,893   335,394
        Other non-current assets 1,412,830   1,754,588   261,442
        Total non-current assets 6,672,920   9,584,871   1,428,191
        Total asse ts 18,842,552   21,044,580   3,135,742
                   
        LIABILITIE S          
        Current liabilities:          
        Short-term borrowings 1,870,000   2,378,800   354,452
        Trade payable 2,869,953   1,862,176   277,473
        Amounts due to related parties 219,583   263,696   39,292
        Taxes payable 51,317   37,850   5,640
        Current portion of operating lease liabilities   256,350   38,197
        Current portion of long-term borrowings 198,852   251,754   37,513
        Accruals and other liabilities 3,383,681   2,638,733   393,185
               [19659323]   
        Total current liabilities 8,593,386   7,689,359   1,145,752
                   
        Non-current liabilities:          
        Long-term borrowings 1,168,012   6,618,557   986,196
        Non-current operating lease liabilities   2,114,881   315,127
        Other non-current liabilities 930,812   922,287   137,425
        Total non-current liabilities 2,098,824   9,655,725   1,438,748
        Total liabilities 10,692,210   17,345,084   2,584,500
                   

        <p c lass="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="NIO INC. " data-reactid="121">NIO INC.

        <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Consolidated Balance Sheets " data-reactid="122">Consolidated Balance Sheets

        Amounts expressed in Renminbi (“RMB”), unless otherwise stated
        (in thousands, except for share and per share data)
                   
          December 31, 2018
        March 31, 2019
        March 31, 2019
          (audited)
        (unaudited)
        (unaudited)
                  (US$)
        MEZZ ANINE EQUITY          
        Redeemable non-controlling interests[19659514]1,329,197   1,360,411   202,708
        Total mezzanine equity 1,329,197   1,360,411   202,708
        SHAREHOLDERS’ EQUITY          
        Ordinary shares 1,809   1,813   270
        Treasury shares (9,186)    
        Additional paid in capital 41,918,936   40,095,980   5,974,487
        Accumulated other comprehensive loss (34,708)   (95,293)   (14,199)
        Accumulated deficit (35,039,810)   (37,691,839)   (5,616,259)
        Total NIO Inc. shareholders’ equity 6,837,041   2,310,661   344,299
        Non -controlling interests (15,896)   28,424   4,235
        Total shareholders’ equity 6,821,145   2,339,085   348,534
        Total liabilities, mezzanine equity and shareholders’ equity 18,842,552   21,044,580   3,135,742
                   

        <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="NIO INC. " data-reactid="128">NIO INC.

        <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Consolidated Statements of Comprehensive Loss " data-reactid="129">Consolidated Statements of Comprehensive Loss [19659293]

           
        Amounts expressed in Renminbi (“RMB”), unless otherwise stated
        (in thousands, except for share and per share data)  
          Three Months Ended
          March 31, 2018 December 31, 2018 March 31, 2019 March 31, 2019
          (unaudited)   (unaudited)   (unaudited)   (unaudited)
                      (US$)
        Revenues:              
        Vehicle s ales   3,381,192   1,535,190   228,750
        Other sales   54,415   95,971   14,300
        [1 9459009]Total revenues   3,435,607   1,631,161   243,050
        Cost of sales:              
        Vehicle sales   (3,256,066)   (1,645,189)   (245,141)
        Other sales   (165,911)   (205,273)   (30,587)
        Total cost of sales   (3,421,977)   (1,850,462)   (275,728)
        Gross profit/(loss)   13,630   (219,301 )   (32,678)
        Operating expenses:              
        Research and development (694,139)   (1,515,163)[19659074]  (1,078,448)   (160,694)
        Selling, general and administrative (769,729)   (1,945,393)   (1,319,937)   (196,677)
        Total operating expenses (1,463,868)   (3,460,556)   (2,398,385)   (357,371)
        Loss from operations (1,463,868)   (3,446,926)   (2,617,686)   (390,049)
                       
        Interest income 28,437   61,999   62,738   9,348
        Interest expenses (5,200)   (76,419)   (68,118)   (10,150)
        Share of (losses)/income of equity investees (833)  [19659074]1,671   2,112   315
        Other loss, net (87,675)   (27,037)   (1,324)   (197)
        Loss before income tax expense (1,529,139)   (3,486,712)   (2,622,278)   (390,733)
        Income tax expense (1,883)   (16,302)   (1,341)   (200)
        Net loss (1,531,022)   (3,503,014)   (2,623,619)   (390,933)
        Accretion on convertible redeemable preferred shares to redemption value (2,421,129)[19659630]     
        Accretion on redeemable non-controlling interests to redemption value   (31,898)   (31,214)  [19659074](4,651)
        Net loss attributable to non-controlling interests 8,242   18,427   2,804   418
        Net loss attributable to ordinary shareholders of NIO Inc. (3,943,909)   (3,516,485)   (2,652,029)   (395,166)
        Net loss (1,531,022)   (3,503,014)   (2,623,619)   (390,933)
        Other comprehensive (loss)/income              
        Foreign currency translation adjustment, net of nil tax (154,372)   37,180   (60,585)   (9,027)
        Total other comprehensive (loss)/income (154,372)   37,180   (60,585)   (9,02 7)
        Total comprehensive loss (1,685,394)   (3,465,834)   (2,684,204)   (399,960)
                       
        Accretion on convertible redeemable preferred shares to redemption value.. (2,421,129)      
        Accretion on redeemable non-controlling interests to redemption value   (31,898)   (31,214)   (4,651)
        Net loss attributable to non-controlling interests 8,242   18,427   2,804   418
        Comprehensive loss attributable to ordinary shareholders of NIO Inc. (4,098,281)   (3,479,305)   (2,712,614)   (404,193)
        Weighted average number of ordinary shares used in computing net loss per share               
        Basic and diluted 26,126,279   1,044,777,745   1,034,648,189   1,034,648,189
        Net loss per share attributable to ordinary shareholders              
        Basic and diluted (150.96)   (3.37)   (2.56)   (0.38)
        Weighted average number of ADS used in computing net loss per share              
        Basic and diluted.   1,044,777,745   1,034,648,189   1,034,648,189
        Net loss per ADS attribut able to ordinary shareholders              
        Basic and diluted   (3.37)   (2.56)   (0.38)
                       

        <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="NIO INC. " data-reactid="133">NIO INC.

        <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Unaudited Reconciliation of GAAP and Non-GAAP Results" data-reactid="134">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 March 31, 2019
          GAAP
        Result
          % of
        Total
        Revenues
          Non-GAAP
        Adjustment
          % of
        Total
        Revenues
          Non-GAAP
        Result
          % of
        Total
        Revenues
        [19659596] 
                             
        Share-based compensation included in cost of sales and operating expenses is as follows:                      
        Cost of sales (1,850,462)   -113.5%   1,475  [19659074]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)   -260.5%   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)   -1 62.7%   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)    
        Net loss per ADS attributable to ordinary shareholders, basic and diluted (USD) (0.38)       0.02       (0.36)    
                               
            Three Months Ended December 31, 2018
          GAAP
        Result
        % of
        Total
        Revenues

        Non-GAAP
        Adjustment
        % of
        Total
        Revenues
        Non-GAAP
        Result
          % of
        Total
        Revenues
                     [19660236]         
        Share-based compensation included in cost of sales and operating expenses is as follows:                      
        Cost of sales (3,421,977)   -99.6%   1,269   0.0%   (3,420,708)   -99.6%[19659316]Research and development expenses (1,515,163)   -44.1%   20,557   0.6%   (1,494,606)   -43.5%
        Selling, general and administrative expenses (1,945,393)   -56.6%   119,884   3.5%   (1,825,509)   -53.1%
        Total (6,882,533)   -200.3%  [19660263]141,710   4.1%   (6,740,823)   -196.2%
                               
        Loss from operations (3,446,926)   -100.3%   141,710   4.1%   (3,305,216)   -96.2%
             [19660393]                 
        Net loss (3,503,014)   -102.0%   141,710   4.1%   (3,361,304)   -97.8%
                               
        Accretion on redeemable non-controlling interests to redemption value[19659630](31,898 )   -0.9%   31,898   0.9%     0.0%
        Net loss attributable to ordinary shareholders of NIO Inc. (3,516,485)   -102.4%   173,608   5.1%   (3,342,877)   -97.3%
        Net loss per share attributable to ordinary shareholders, basic and diluted (RMB) (3 .37)       0.17       (3.20)    
        Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB) (3.37)       0.17       (3.20)    
                               
         [1 9660426]Three Months Ended March 31, 2018
          GAAP
        Result
          % of
        Total

        Revenues
          Non-GAAP
        Adjustment
          % of
        Total
        Revenues
          Non-GAAP
        Result
          % of
        Total
        Revenues
         [19659074]                     
        Share-based compensation included in operating expenses is as follows:                      
        Research and development expenses (694,139)     8,920     (685,219)[19659654] 
        Selling, general and administrative expenses (769,729)     33,200     (736,529)  
        Total (1,463,868)    —   42,120    —   (1,421,748)  
                             
        Loss from operations (1,463,868)     42,120     (1,421,748)  
                               
        Net loss (1,531,022)     42,120     (1,488,902)  
                               
        Accretion on convertible redeemable preferred shares to redemption value (2,421,129)     2,421,129      
           [19659074]                   
        Net loss attributable to ordinary shareholders of NIO Inc. (3,943,909)     2,463,249     (1,480,660)  
                               
        Net loss per share attr ibutable to ordinary shareholders, basic and diluted (RMB) (150.96)       94.28       (56.68)    
                               

        <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="
        1
        NIO started deliveries of ES8 on June 28, 2018. Deliveries for the second quarter of 2018 represent the 3-day period from June 28 to June 30, 2018.
        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." data-reactid="140">
        1
        NIO started deliveries of ES8 on June 28, 2018. Deliveries for the second quarter of 2018 represent the 3-day period from June 28 to June 30, 2018.
        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 perce ntage changes are calculated.



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