Quarterly Total Revenues reached RMB4,526.0 million (US$666.6 million) i
Quarterly Deliveries of the ES8, ES6 and EC6 were 12,206 vehicles
Quarterly Vehicle Margin reached 14.5%
Quarterly Gross Margin reached 12.9%

SHANGHAI, China, Nov. 17, 2020 (GLOBE NEWSWIRE) -- NIO Inc. (“NIO” or the “Company”) (NYSE: NIO), a pioneer in China’s premium smart electric vehicle market, today announced its unaudited financial results for the quarter ended September 30, 2020.

Operating Highlights for the Third Quarter of 2020

Key Operating Results

 
 2020 Q32020 Q22020 Q12019 Q4
Deliveries12,20610,3313,8388,224
     
 2019 Q32019 Q22019 Q12018 Q4
Deliveries4,7993,5533,9897,980

Financial Highlights for the Third Quarter of 2020

Key Financial Results



(in RMB million, except for per ordinary share data and percentage)		       
  2020 Q32020 Q2  2019 Q3 % Changeiv
     QoQYoY
Vehicle Sales 4,266.83,486.1 1,733.5 22.4%146.1%
Vehicle Margin 14.5%9.7% -6.8% 482bp2,130bp
Total Revenues 4,526.03,718.9 1,836.8 21.7%146.4%
Gross Profit/(Loss) 585.8313.1 (221.6) 87.1%364.4%
Gross Margin 12.9%8.4% -12.1% 452bp2,504bp
Loss from Operations (946.0)(1,160.0) (2,409.2) -18.4%-60.7%
Adjusted Loss from Operations (non-GAAP)(896.7)(1,114.7) (2,338.8) -19.6%-61.7%
Net Loss (1,047.0)(1,176.7) (2,521.7) -11.0%-58.5%
Adjusted Net Loss (non-GAAP)(997.8)(1,131.4) (2,451.2) -11.8%-59.3%
Net Loss Attributable to Ordinary Shareholders(1,187.9)(1,207.8) (2,553.6) -1.6%-53.5%
Net Loss per Ordinary Share-Basic and Diluted(0.98)(1.15) (2.48) -14.3%-60.4%
Adjusted Net Loss per Ordinary Share-Basic and Diluted (non-GAAP)(0.82)(1.08) (2.38) -24.1%-65.5%

Recent Developments

Deliveries in October 2020

Launch of 100kWh Battery Pack

Completion of Registered Follow-on Offering of American Depositary Shares

Completion of Increase of Controlling Equity Interests in NIO China

Completion of Redemption of Equity Interests in XPT from Minority Shareholders

CEO and CFO Comments

“We achieved a new record-high quarterly deliveries of 12,206 ES8s, ES6s and EC6s in total in the third quarter of 2020, followed by the best-ever monthly deliveries of 5,055 vehicles in October,” said William Bin Li, founder, chairman and chief executive officer of NIO. “In view of the growing market demand for our competitive products, we are motivated to continuously elevate the production capacity to the next level. We expect to deliver 16,500 to 17,000 vehicles in the coming fourth quarter.”

“In the past months, we are pleased to have launched the BaaS and the 100kWh battery pack with proprietary thermal management and significant performance enhancement. Enabled by our unique battery swap technologies, innovative BaaS model and comprehensive power solutions, our users can benefit from lower initial purchase prices of vehicles, flexible battery upgrade options as well as enhanced assurance of battery performance. Additionally, following the release of the NIO OS 2.7.0 via firmware-over-the-air (FOTA) upgrade in October 2020, our users have been able to enjoy the Navigate on Pilot (NoP) feature of NIO Pilot on highways and urban expressways in China. Going forward, we remain committed to deploying more resources into the core technology innovations and delivering the best holistic product and service experiences to our user community in the pursuit of fortifying our long-term competitiveness in the market,” concluded Mr. Li.

“With another quarter of record high deliveries in the third quarter of 2020, plus further improvements in average selling price, material cost and manufacturing efficiency, our vehicle margin increased to 14.5%. Additionally, we achieved positive cash flow from operating activities for the second sequential quarter,” added Steven Wei Feng, NIO’s chief financial officer. “Our order growth momentum continued steadfastly, driven by the expanded brand awareness, growing user base, extended sales network and most importantly, the compelling products and technologies. Meanwhile, our continuous improvement of operational efficiency, cash flow and balance sheet has laid a solid foundation for our future sustainable growth and decisive investments in technologies."

Financial Results for the Third Quarter of 2020

Revenues

Cost of Sales and Gross Margin

Operating Expenses

Loss from Operations

Share-based Compensation Expenses

Net Loss and Earnings Per Share

Balance Sheets

Business Outlook

For the fourth quarter of 2020, the Company expects:

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 7:00 PM U.S. Eastern Time on November 17, 2020 (8:00 AM Beijing/Hong Kong Time on November 18, 2020) to discuss financial results and answer questions from investors and analysts. Listeners may register in advance of the conference using the link provided below and dial in 10 minutes prior to the call, using participant dial-in numbers, Direct Event passcode and unique registrant ID which would be provided upon registering.

http://apac.directeventreg.com/registration/event/5329138

Additionally, 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 accessible by phone approximately two hours after the conclusion of the live call at the following numbers, until November 25, 2020 07:59 AM ET:

United States:+1-646-254-3697
International:+61-2-8199-0299
Hong Kong, China:+852-3051-2780
Mainland China: +86-400-632-2162
Conference ID:5329138

About NIO Inc.

NIO Inc. is a pioneer in China’s 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, jointly manufactures, and sells smart 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 and convenient power solutions, innovative Battery as a Service (BaaS) program, and other user-centric services. NIO began deliveries of the ES8, a 7-seater flagship premium electric SUV, in China in June 2018, and its variant, the 6-seater ES8, in March 2019. NIO officially launched the ES6, a 5-seater high-performance premium electric SUV, in December 2018 and began deliveries of the ES6 in June 2019. NIO officially launched the EC6, a 5-seater premium electric coupe SUV, in December 2019 and began deliveries of the EC6 in September 2020.

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, 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 its customers; the viability, growth potential and prospects of the newly introduced BaaS model; 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, ES6 and EC6; 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 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 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 RMB6.7896 to US$1.00, the noon buying rate in effect on September 30, 2020 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 Relations
Tel: +86-21-6908-2018
Email: ir@nio.com

Source: NIO




NIO INC.

Unaudited Consolidated Balance Sheets

Amounts expressed in Renminbi (“RMB”), unless otherwise stated
(in thousands, except for share and per share data)


 December 31, 2019 September 30, 2020 September 30, 2020
 (audited) (unaudited) (unaudited)
     (US$)
ASSETS     
Current assets:     
Cash and cash equivalents862,839 19,327,717 2,846,665
Restricted cash82,507 184,244 27,136
Short-term investment111,000 2,718,303 400,363
Trade receivable1,352,093 1,483,971 218,565
Amounts due from related parties50,783 86,030 12,671
Inventory889,528 1,039,091 153,042
Prepayments and other current assets1,579,258 1,485,754 218,830
Total current assets4,928,008 26,325,110 3,877,272
      
Non-current assets:     
Long-term restricted cash44,523 43,623 6,425
Property, plant and equipment, net5,533,064 5,132,587 755,948
Intangible assets, net1,522 851 125
Land use rights, net208,815 205,180 30,220
Long-term investments115,325 340,764 50,189
Amounts due from related parties— 3,383 498
Right-of-use assets - operating lease1,997,672 1,376,019 202,666
Other non-current assets1,753,100 965,593 142,216
Total non-current assets9,654,021 8,068,000 1,188,287
      
Total assets14,582,029 34,393,110 5,065,559
      
LIABILITIES     
Current liabilities:     
Short-term borrowings885,620 951,957 140,208
Trade payable3,111,699 4,932,003 726,406
Amounts due to related parties309,729 447,791 65,952
Taxes payable43,986 39,231 5,778
Current portion of operating lease liabilities608,747 522,661 76,980
Current portion of long-term borrowings322,436 445,038 65,547
Accruals and other liabilities4,216,641 3,526,194 519,351
Total current liabilities9,498,858 10,864,875 1,600,222
      
Non-current liabilities:     
Long-term borrowings7,154,798 6,764,903 996,363
Non-current operating lease liabilities1,598,372 1,049,698 154,604
Other non-current liabilities1,151,813 1,541,444 227,030
Total non-current liabilities9,904,983 9,356,045 1,377,998
      
Total liabilities19,403,841 20,220,920 2,978,220
      



NIO INC.

Unaudited Consolidated Balance Sheets

Amounts expressed in Renminbi (“RMB”), unless otherwise stated
(in thousands, except for share and per share data)


 December 31, 2019 September 30, 2020 September 30, 2020
 (audited) (unaudited) (unaudited)
     (US$)
MEZZANINE EQUITY     
Redeemable non-controlling interests1,455,787 6,145,538 905,140
Total mezzanine equity1,455,787 6,145,538 905,140
SHAREHOLDERS’ (DEFICIT)/EQUITY     
Ordinary shares1,827 2,414 356
Additional paid in capital40,227,856 58,380,028 8,598,449
Accumulated other comprehensive loss(203,048) (98,128) (14,453)
Accumulated deficit(46,326,321) (50,262,046) (7,402,799)
Total NIO Inc. shareholders’ (deficit)/equity(6,299,686) 8,022,268 1,181,553
Non-controlling interests22,087 4,384 646
Total shareholders’ (deficit)/equity(6,277,599) 8,026,652 1,182,199
Total liabilities, mezzanine equity and shareholders’ equity14,582,029 34,393,110 5,065,559
      




NIO INC.

Unaudited 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
 September 30, 2019  June 30, 2020 September 30, 2020 September 30, 2020
 (unaudited) (unaudited) (unaudited) (unaudited)
       (US$)
Revenues:       
Vehicle sales1,733,469 3,486,089 4,266,788 628,430
Other sales103,375 232,841 259,172 38,172
Total revenues1,836,844 3,718,930 4,525,960 666,602
Cost of sales:       
Vehicle sales(1,850,943) (3,148,621) (3,649,069) (537,450)
Other sales(207,485) (257,168) (291,079) (42,871)
Total cost of sales(2,058,428) (3,405,789) (3,940,148) (580,321)
Gross (loss)/profit(221,584) 313,141 585,812 86,281
Operating expenses:       
Research and development(1,023,193) (545,185) (590,783) (87,013)
Selling, general and administrative(1,164,443) (936,788) (940,331) (138,496)
Other operating income/(loss), net— 8,829 (686) (101)
Total operating expenses(2,187,636) (1,473,144) (1,531,800) (225,610)
Loss from operations(2,409,220) (1,160,003) (945,988) (139,329)
        
Interest income28,669 20,584 51,652 7,608
Interest expenses(103,211) (112,917) (108,761) (16,019)
Share of losses of equity investees, net of tax(38,419) (4,408) (13,638) (2,009)
Other income/(loss), net1,067 82,107 (29,049) (4,278)
Loss before income tax expense(2,521,114) (1,174,637) (1,045,784) (154,027)
Income tax expense(536) (2,017) (1,213) (179)
Net loss(2,521,650) (1,176,654) (1,046,997) (154,206)
Accretion on redeemable non-controlling interests to redemption value(31,907) (31,561) (142,742) (21,024)
Net (loss)/profit attributable to non-controlling interests(58) 368 1,802 265
        
        
        
        
        
        
        
Net loss attributable to ordinary shareholders of NIO Inc.(2,553,615) (1,207,847) (1,187,937) (174,965)
        
Net loss(2,521,650) (1,176,654) (1,046,997) (154,206)
Other comprehensive (loss)/income       
Foreign currency translation adjustment, net of nil tax(129,405) 6,477 207,985 30,633
        
Total other comprehensive (loss)/income(129,405) 6,477 207,985 30,633
Total comprehensive loss(2,651,055) (1,170,177) (839,012) (123,573)


Accretion on redeemable non-controlling interests to redemption value(31,907) (31,561) (142,742) (21,024)
Net (loss)/profit attributable to non-controlling interests(58) 368 1,802 265
Comprehensive loss attributable to ordinary shareholders of NIO Inc.(2,683,020) (1,201,370) (979,952) (144,332)


Weighted average number of ordinary shares used in computing net loss per share    
Basic and diluted1,028,698,3031,054,638,8221,210,613,4091,210,613,409
Net loss per share attributable to ordinary shareholders    
Basic and diluted(2.48)(1.15)(0.98)(0.14)
Weighted average number of ADS used in computing net loss per share    
Basic and diluted1,028,698,3031,054,638,8221,210,613,4091,210,613,409
Net loss per ADS attributable to ordinary shareholders    
Basic and diluted(2.48)(1.15)(0.98)(0.14)




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 September 30, 2020
 GAAP
Result		 % of
Total		Non-GAAP
Adjustment		 % of
Total		Non-GAAP
Result		 % of
Total
   Revenues  Revenues  Revenues
          
Share-based compensation included in cost of sales and operating expenses is as follows:         
Cost of sales(3,940,148) -87.1% 1,371 0.0% (3,938,777) -87.1%
Research and development expenses(590,783) -13.1% 12,996 0.3% (577,787) -12.8%
Selling, general and administrative expenses(940,331) -20.8% 34,872 0.8% (905,459) -20.0%
Total(5,471,262) -121.0% 49,239 1.1% (5,422,023) -119.9%
          
Loss from operations(945,988) -20.9% 49,239 1.1% (896,749) -19.8%
          
Net loss(1,046,997) -23.1% 49,239 1.1% (997,758) -22.0%
          
Accretion on redeemable non-controlling interests to redemption value(142,742) -3.2% 142,742 3.2% — 0.0%
          
          
Net loss attributable to ordinary shareholders of NIO Inc.(1,187,937) -26.2% 191,981 4.2% (995,956) -22.0%
Net loss per share attributable to ordinary shareholders, basic and diluted (RMB)
(0.98)		  0.16  (0.82)  
Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)(0.98)  0.16  (0.82)  
Net loss per ADS attributable to ordinary shareholders, basic and diluted (USD)(0.14)  0.02  (0.12)  
          
          
          
          


         Three Months Ended June 30, 2020  
 GAAP
Result		 % of
Total		 Non-GAAP
Adjustment		 % of
Total		 Non-GAAP
Result		 % of
Total
   Revenues   Revenues   Revenues
            
Share-based compensation included in cost of sales and operating expenses is as follows:           
Cost of sales(3,405,789) -91.6% 1,296 0.0% (3,404,493) -91.6%
Research and development expenses(545,185) -14.7% 11,659 0.3% (533,526) -14.4%
Selling, general and administrative expenses(936,788) -25.2% 32,333 0.9% (904,455) -24.3%
            
Total (4,887,762) -131.5% 45,288 1.2% (4,842,474) -130.1%
            
Loss from operations(1,160,003) -31.2% 45,288 1.2% (1,114,715) -30.0%
            
Net loss (1,176,654) -31.6% 45,288 1.2% (1,131,366) -30.4%
            
Accretion on redeemable non-controlling interests to redemption value (31,561) -0.8% 31,561 0.8% —   0.0%
            
Net loss attributable to ordinary shareholders of NIO Inc.(1,207,847) -32.5% 76,849 2.1% (1,130,998) -30.4%
            
            
            
Net loss per share attributable to ordinary shareholders, basic and diluted (RMB)(1.15)   0.07   (1.08)  
            
Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)(1.15)   0.07   (1.08)  



  Three Months Ended September 30, 2019
 GAAP
Result		 % of
Total		Non-GAAP
Adjustment		 % of
Total		Non-GAAP
Result		 % of
Total
   Revenues  Revenues  Revenues
          
Share-based compensation included in cost of sales and operating expenses is as follows:         
Cost of sales(2,058,428) -112.1% 2,749 0.1% (2,055,679) -112.0%
Research and development expenses(1,023,193) -55.7% 19,578 1.1% (1,003,615) -54.6%
Selling, general and administrative expenses(1,164,443) -63.4% 48,111 2.6% (1,116,332) -60.8%
Total(4,246,064) -231.2% 70,438 3.8% (4,175,626) -227.4%
          
Loss from operations(2,409,220) -131.2% 70,438 3.8% (2,338,782) -127.4%
          
Net loss(2,521,650) -137.3% 70,438 3.8% (2,451,212) -133.5%
          
Accretion on redeemable non-controlling interests to redemption value(31,907) -1.7% 31,907 1.7% — 0.0%
          
Net loss attributable to ordinary shareholders of NIO Inc.(2,553,615) -139.0% 102,345 5.6% (2,451,270) -133.4%
Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)(2.48)    0.10    (2.38)   
Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB)(2.48)    0.10    (2.38)   


____________________________________________________________
i All translations from RMB to USD for the third quarter of 2020 were made at the rate of RMB6.7896 to US$1.00, the noon buying rate in effect on September 30, 2020 in the H.10 statistical release of the Federal Reserve Board.

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