NIO Inc. Reports Unaudited Fourth Quarter and Full Year 2023 Financial Results
NIO Inc. announced its unaudited financial results for Q4 and full year 2023, with total revenues reaching RMB17,103.2 million for Q4 and RMB55,617.9 million for the full year. Vehicle deliveries were 50,045 in Q4 and 160,038 for the full year.
Positive
Total revenues for NIO in Q4 2023 were RMB17,103.2 million, marking a 6.5% increase from Q4 2022.
Vehicle deliveries in Q4 2023 totaled 50,045 units, with 33,679 premium smart electric SUVs and 16,366 premium smart electric sedans.
NIO's vehicle sales in Q4 2023 were RMB15,438.7 million, showing a 4.6% increase from Q4 2022.
The company reported a gross profit of RMB1,279.2 million in Q4 2023, a significant increase of 105.7% from Q4 2022.
NIO's loss from operations in Q4 2023 was RMB6,625.3 million, a 1.6% decrease from Q4 2022.
Net loss for NIO in Q4 2023 was RMB5,367.7 million, a 7.2% decrease from Q4 2022.
Negative
Gross profit for the full year of 2023 decreased by 40.7% compared to the previous year.
NIO's gross margin for the full year of 2023 was 5.5%, lower than the 10.4% in the previous year.
Loss from operations in the full year of 2023 increased by 44.8% from the previous year.
Net loss for the full year of 2023 increased by 43.5% from the previous year.
The reported increase in quarterly vehicle deliveries by NIO Inc. indicates a strong demand trajectory for the company's premium smart electric vehicles, which is a positive signal for investors and stakeholders. The year-over-year growth of 25.0% in the fourth quarter and 30.7% for the full year suggests that NIO is expanding its market share in the premium EV segment. However, the quarterly decrease of 9.7% from Q3 to Q4 might raise concerns about market saturation or operational challenges.
It's noteworthy that despite the increase in deliveries, vehicle sales revenue saw a quarter-over-quarter decrease, suggesting potential pricing pressure or a change in the sales mix. This could be indicative of an increasingly competitive landscape where NIO may need to adjust its pricing strategy to maintain market position.
The significant improvement in vehicle margin from 6.8% to 11.9% year-over-year is commendable and reflects operational efficiency and cost management. However, the full-year vehicle margin decline from 13.7% to 9.5% could be a point of concern, possibly hinting at increased costs or reduced pricing power over the year.
NIO's financial results reveal a complex picture. The gross profit increase of 105.7% in Q4 is impressive, indicating substantial operational improvements and cost efficiencies. However, the full year's gross profit decline of 40.7% alongside a gross margin decrease from 10.4% to 5.5% suggests that these improvements are not consistent throughout the year or are offset by other factors.
The reported net loss and adjusted net loss figures for Q4 and the full year, despite being lower year-over-year, are still substantial and indicate that NIO is far from profitability. The increased loss from operations of 44.8% for the full year is particularly alarming for investors, as it may reflect scaling challenges or increased competition affecting profitability.
Strategic equity investment and technology licensing agreements highlight NIO's efforts to secure its financial position and invest in future growth. However, the financial health of the company must be closely monitored, especially considering the significant losses and the need for sustained investment in research and development to stay competitive in the EV market.
The performance of NIO Inc. must be contextualized within the broader economic environment and the electric vehicle (EV) industry. The EV market has seen a global uptick in demand, driven by environmental concerns and policy incentives. NIO's growth in vehicle deliveries aligns with this trend and suggests effective capitalization on market opportunities.
However, the increase in losses from operations and net loss year-over-year could reflect broader economic pressures such as supply chain disruptions, increased raw material costs, or the impact of tariffs and trade tensions. The strategic equity investment from CYVN Investments indicates investor confidence in NIO's long-term prospects, despite short-term financial challenges.
It is essential to consider consumer behavior shifts and regulatory changes that could affect the EV industry. For instance, government subsidies and incentives play a significant role in consumer purchasing decisions and any changes in these policies could impact NIO's sales and profitability.
03/05/2024 - 05:00 AM
Quarterly Total Revenues reached RMB17,103.2 million (US$2,408.9 million ) i Quarterly Vehicle Deliveries were 50,045 units Full Year Total Revenues reached RMB55,617.9 million (US$7,833.6 million ) Full Year Vehicle Deliveries were 160,038 units
SHANGHAI, China, March 05, 2024 (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 fourth quarter and full year ended December 31, 2023.
Operating Highlights for the Fourth Quarter and Full Year of 2023
Vehicle deliveries were 50,045 in the fourth quarter of 2023, consisting of 33,679 premium smart electric SUVs and 16,366 premium smart electric sedans, representing an increase of 25.0% from the fourth quarter of 2022, and a decrease of 9.7% from the third quarter of 2023.Vehicle deliveries were 160,038 in 2023, representing an increase of 30.7% from 2022.Key Operating Results 2023 Q4 2023 Q3 2023 Q2 2023 Q1 Deliveries 50,045 55,432 23,520 31,041 2022 Q4 2022 Q3 2022 Q2 2022 Q1 Deliveries 40,052 31,607 25,059 25,768
Financial Highlights for the Fourth Quarter of 2023
Vehicle sales were RMB15,438.7 million (US$2,174.5 million ) in the fourth quarter of 2023, representing an increase of 4.6% from the fourth quarter of 2022 and a decrease of 11.3% from the third quarter of 2023.Vehicle margin ii was 11.9% in the fourth quarter of 2023, compared with 6.8% in fourth quarter of 2022 and 11.0% in the third quarter of 2023.Total revenues were RMB17,103.2 million (US$2,408.9 million ) in the fourth quarter of 2023, representing an increase of 6.5% from the fourth quarter of 2022 and a decrease of 10.3% from the third quarter of 2023.Gross profit was RMB1,279.2 million (US$180.2 million ) in the fourth quarter of 2023, representing an increase of 105.7% from the fourth quarter of 2022 and a decrease of 16.0% from the third quarter of 2023.Gross margin was 7.5% in the fourth quarter of 2023, compared with 3.9% in the fourth quarter of 2022 and 8.0% in the third quarter of 2023.Loss from operations was RMB6,625.3 million (US$933.2 million ) in the fourth quarter of 2023, representing a decrease of 1.6% from the fourth quarter of 2022 and an increase of 36.8% from the third quarter of 2023. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB6,059.3 million (US$853.4 million ) in the fourth quarter of 2023, representing an increase of 0.7% from the fourth quarter of 2022 and an increase of 42.9% from the third quarter of 2023.Net loss was RMB5,367.7 million (US$756.0 million ) in the fourth quarter of 2023, representing a decrease of 7.2% from the fourth quarter of 2022 and an increase of 17.8% from the third quarter of 2023. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB4,801.7 million (US$676.3 million ) in the fourth quarter of 2023, representing a decrease of 5.2% from the fourth quarter of 2022 and an increase of 21.5% from the third quarter of 2023.Cash and cash equivalents, restricted cash, short-term investment and long-term time deposits were RMB57.3 billion (US$8.1 billion ) as of December 31, 2023.Key Financial Results for the Fourth Quarter of 2023 (in RMB million, except for percentage) 2023 Q4 2023 Q3 2022 Q4 % Changeiii QoQ YoY Vehicle Sales 15,438.7 17,408.9 14,759.0 -11.3% 4.6% Vehicle Margin 11.9% 11.0% 6.8% 90bp 510bp Total Revenues 17,103.2 19,066.6 16,063.5 -10.3% 6.5% Gross Profit 1,279.2 1,523.3 621.8 -16.0% 105.7% Gross Margin 7.5% 8.0% 3.9% -50bp 360bp Loss from Operations (6,625.3) (4,843.9) (6,736.1) 36.8% -1.6% Adjusted Loss from Operations (non-GAAP) (6,059.3) (4,240.4) (6,015.7) 42.9% 0.7% Net Loss (5,367.7) (4,556.7) (5,786.1) 17.8% -7.2% Adjusted Net Loss (non-GAAP) (4,801.7) (3,953.2) (5,065.6) 21.5% -5.2%
Financial Highlights for the Full Year of 2023
Vehicle sales were RMB49,257.3 million (US$6,937.7 million ) for the full year of 2023, representing an increase of 8.2% from the previous year.Vehicle margin was 9.5% for the full year of 2023, compared with 13.7% for the previous year.Total revenues were RMB55,617.9 million (US$7,833.6 million ) for the full year of 2023, representing an increase of 12.9% from the previous year.Gross profit was RMB3,051.8 million (US$429.8 million ) for the full year of 2023, representing a decrease of 40.7% from the previous year.Gross margin was 5.5% for the full year of 2023, compared with 10.4% for the previous year.Loss from operations was RMB22,655.2 million (US$3,190.9 million ) for the full year of 2023, representing an increase of 44.8% from the previous year. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB20,286.1 million (US$2,857.2 million ) in 2023, representing an increase of 52.0% from the previous year.Net loss was RMB20,719.8 million (US$2,918.3 million ) for the full year of 2023, representing an increase of 43.5% from the previous year. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB18,350.7 million (US$2,584.6 million ) for the full year of 2023, representing an increase of 51.1% from the previous year. Key Financial Results for Full Year 2023 (in RMB million, except for percentage) 2023 2022 % Change i ii Vehicle Sales 49,257.3 45,506.6 8.2% Vehicle Margin 9.5% 13.7% -420bp Total Revenues 55,617.9 49,268.6 12.9% Gross Profit 3,051.8 5,144.0 -40.7% Gross Margin 5.5% 10.4% -490bp Loss from Operations (22,655.2) (15,640.7) 44.8% Adjusted Loss from Operations (non-GAAP) (20,286.1) (13,344.8) 52.0% Net Loss (20,719.8) (14,437.1) 43.5% Adjusted Net Loss (non-GAAP) (18,350.7) (12,141.2) 51.1%
Recent Developments Deliveries in January and February 2024
NIO delivered 10,055 vehicles in January 2024 and 8,132 vehicles in February 2024. As of February 29, 2024, cumulative deliveries of NIO vehicles reached 467,781. NIO Day and Launch of ET9
On December 23, 2023, NIO held NIO Day 2023 in Xi’an, China and launched the ET9, a smart electric executive flagship. The ET9 is an epitome of NIO’s innovative technologies, setting a new technological benchmark for smart electric vehicles executive flagship. Listed in MIIT’s Catalog of Vehicle Manufacturers
NIO has completed the filing process for its electric passenger vehicle investment project with the relevant authorities in Anhui Province, and has been included in the Ministry of Industry and Information Technology's catalogue of approved manufacturers. Strategic Equity Investment from CYVN
On December 27, 2023, NIO closed the US$2.2 billion strategic equity investment from CYVN Investments RSC Ltd (“CYVN”), an investment vehicle based in Abu Dhabi. Together with the previously completed transactions in July 2023, CYVN in aggregate beneficially owns approximately 20.1% of the Company’s total issued and outstanding shares. Completion of the Repurchase Right Offer for Convertible Senior Notes due 2026
On February 1, 2024, NIO completed the repurchase right offer relating to its 0.00% Convertible Senior Notes due 2026 (the “Notes”). US$300,536,000.00 aggregate principal amount of the Notes were validly surrendered and not withdrawn prior to the expiration of the repurchase right offer. Following settlement of the repurchase, US$912,000.00 aggregate principal amount of the Notes remain outstanding and continue to be subject to the existing terms of the Indenture and the Notes. Board Change
On February 7, 2024, NIO appointed Mr. Eddy Georges Skaf and Mr. Nicholas Paul Collins as new directors of the Company’s board of directors. In addition, on the same day, Mr. James Gordon Mitchell resigned as a director of the Company. Technology License Transaction
On February 26, 2024, NIO Technology (Anhui) Co., Ltd. (“NIO Technology”), a subsidiary of NIO Inc., entered into a technology license agreement (the “Technology License Agreement”) with Forseven Limited (“Forseven”), a subsidiary of CYVN Holdings L.L.C. Pursuant to the Technology License Agreement, NIO Technology will grant a non-exclusive and non-transferrable worldwide license to Forseven to use certain of NIO Technology’s existing and future technical information, technical solutions, software and intellectual property rights related to or subsisting in the smart electric vehicle platforms of NIO Technology. CEO and CFO Comments
“In 2023, NIO set a new delivery record of 160,038 vehicles, ranking first in China’s premium BEV market with an average transaction price over RMB 300,000,” said William Bin Li, founder, chairman and chief executive officer of NIO, “At NIO Day 2023, we unveiled ET9, our smart electric executive flagship, showcasing a suite of our latest technologies, including our self-developed AD chip, full-domain 900V architecture, advanced intelligent chassis system and various other industry-leading innovations.”
“We will soon start deliveries of 2024 NIO products equipped with the highest computing power among production vehicles and constantly enhance users' driving and digital experience. Meanwhile, we plan to release Navigate on Pilot Plus (NOP+) for urban roads to all NT2.0 users in the second quarter. Our continuous investments in technologies, battery swapping network and user community will bolster our competitive advantages as we navigate the future competition,” added William Bin Li.
“Our vehicle margin continued to grow, reaching 11.9% in the fourth quarter of 2023,” added Steven Wei Feng, NIO's chief financial officer, “In December 2023, we closed the US$2.2 billion strategic equity investment from CYVN, demonstrating our unique positioning and competitiveness in the global smart EV industry. Moving forward into 2024, we will prioritize our business objectives, improve system capabilities and optimize cost management efficiency.”
Financial Results for the Fourth Quarter and Full Year of 2023 Revenues
Total revenues in the fourth quarter of 2023 were RMB17,103.2 million (US$2,408.9 million ), representing an increase of 6.5% from the fourth quarter of 2022 and a decrease of 10.3% from the third quarter of 2023.Total revenues for the full year of 2023 were RMB55,617.9 million (US$7,833.6 million ), representing an increase of 12.9% from the previous year.Vehicle sales in the fourth quarter of 2023 were RMB15,438.7 million (US$2,174.5 million ), representing an increase of 4.6% from the fourth quarter of 2022 and a decrease of 11.3% from the third quarter of 2023. The increase in vehicle sales over the fourth quarter of 2022 was mainly due to the increase in delivery volume, partially offset by the lower average selling price as a result of changes in product mix. The decrease in vehicle sales over the third quarter of 2023 was mainly attributed to a decrease in delivery volume. Vehicle sales for the full year of 2023 were RMB49,257.3 million (US$6,937.7 million ), representing an increase of 8.2% from the previous year.Other sales in the fourth quarter of 2023 were RMB1,664.5 million (US$234.4 million ), representing an increase of 27.6% from the fourth quarter of 2022 and an increase of 0.4% from the third quarter of 2023. The increase in other sales over the fourth quarter of 2022 was mainly due to the increase in sales of accessories and provision of power solutions, as a result of continued growth in the number of our users. Other sales remained relatively stable compared with the third quarter of 2023.Other sales for the full year of 2023 were RMB6,360.7 million (US$895.9 million ), representing an increase of 69.1% from the previous year.Cost of Sales and Gross Margin
Cost of sales in the fourth quarter of 2023 was RMB15,823.9 million (US$2,228.8 million ), representing an increase of 2.5% from the fourth quarter of 2022 and a decrease of 9.8% from the third quarter of 2023. Cost of sales remained relatively stable compared with the fourth quarter of 2022. The decrease in cost of sales over the third quarter of 2023 was mainly attributable to a decrease in delivery volume.Cost of sales for the full year of 2023 was RMB52,566.1 million (US$7,403.8 million ), representing an increase of 19.1% from the previous year.Gross profit in the fourth quarter of 2023 was RMB1,279.2 million (US$180.2 million ), representing an increase of 105.7% from the fourth quarter of 2022 and a decrease of 16.0% from the third quarter of 2023.Gross Profit for the full year of 2023 was RMB3,051.8 million (US$429.8 million ), representing a decrease of 40.7% from the previous year.Gross margin in the fourth quarter of 2023 was 7.5% , compared with 3.9% in the fourth quarter of 2022 and 8.0% in the third quarter of 2023. The increase of gross margin over the fourth quarter of 2022 was mainly attributed to the increased vehicle margin. The decrease of gross margin over the third quarter of 2023 was mainly attributed to the decrease in margin from provision of power solutions as a result of expanded power network, and partially offset by the higher vehicle margin. Gross margin for the full year of 2023 was 5.5% , compared with 10.4% for the full year of 2022.Vehicle margin in the fourth quarter of 2023 was 11.9% , compared with 6.8% in the fourth quarter of 2022 and 11.0% in the third quarter of 2023. The increase in vehicle margin from the fourth quarter of 2022 was mainly attributable to (i) the decreased material cost per unit, and (ii) the inventory provisions, accelerated depreciation on production facilities, and losses on purchase commitments for the previous generation of ES8, ES6 and EC6 recorded in the fourth quarter of 2022. The increase in vehicle margin from the third quarter of 2023 was mainly due to the decreased material cost per unit.Vehicle margin for the full year of 2023 was 9.5% , compared with 13.7% for the full year of 2022.Operating Expenses
Research and development expenses in the fourth quarter of 2023 were RMB3,972.1 million (US$559.5 million ), representing a decrease of 0.2% from the fourth quarter of 2022 and an increase of 30.7% from the third quarter of 2023. Excluding share-based compensation expenses, research and development expenses (non-GAAP) were RMB3,616.4 million (US$509.4 million ), representing an increase of 1.8% from the fourth quarter of 2022 and an increase of 36.8% from the third quarter of 2023. Research and development expenses remained relatively stable compared with the fourth quarter of 2022. The increase in research and development expenses over the third quarter of 2023 was mainly due to the incremental design and development costs for new products and technologies as well as the increased personnel costs in research and development functions.Research and development expenses for the full year of 2023 were RMB13,431.4 million (US$1,891.8 million ), representing an increase of 23.9% from the previous year. Excluding share-based compensation expenses, research and development expenses (non-GAAP) were RMB11,914.2 million (US$1,678.1 million ), representing an increase of 25.2% from the previous year.Selling, general and administrative expenses in the fourth quarter of 2023 were RMB3,972.7 million (US$559.5 million ), representing an increase of 12.6% from the fourth quarter of 2022 and an increase of 10.1% from the third quarter of 2023. Excluding share-based compensation expenses, selling, general and administrative expenses (non-GAAP) were RMB3,781.5 million (US$532.6 million ), representing an increase of 16.1% from the fourth quarter of 2022 and an increase of 10.4% from the third quarter of 2023. The increase in selling, general and administrative expenses over the fourth quarter of 2022 and the third quarter of 2023 was mainly attributable to (i) the increase in personnel costs related to sales functions, and (ii) the increase in sales and marketing activities. Selling, general and administrative expenses for the full year of 2023 were RMB12,884.6 million (US$1,814.8 million ), representing an increase of 22.3% from the previous year. Excluding share-based compensation expenses, selling, general and administrative expenses (non-GAAP) were RMB12,116.7 million (US$1,706.6 million ), representing an increase of 25.8% from last year.Loss from Operations
Loss from operations in the fourth quarter of 2023 was RMB6,625.3 million (US$933.2 million ), representing a decrease of 1.6% from the fourth quarter of 2022 and an increase of 36.8% from the third quarter of 2023. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB6,059.3 million (US$853.4 million ) in the fourth quarter of 2023, representing an increase of 0.7% from the fourth quarter of 2022 and an increase of 42.9% from third quarter of 2023. Loss from operations for the full year of 2023 was RMB22,655.2 million (US$3,190.9 million ), representing an increase of 44.8% from last year. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB20,286.1 million (US$2,857.2 million ) in 2023, representing an increase of 52.0% from last year.Net Loss and Earnings Per Share/ADS
Interest and investment income in the fourth quarter of 2023 was RMB1,368.1 million (US$192.7 million ), representing an increase of 288.7% from the fourth quarter of 2022 and an increase of 375.0% from the third quarter of 2023. The increase was primarily attributed to the recycling of unrealized gain from other comprehensive income to investment income of RMB977.3 million for the available-for-sale debt investment.Net loss in the fourth quarter of 2023 was RMB5,367.7 million (US$756.0 million ), representing a decrease of 7.2% from the fourth quarter of 2022 and an increase of 17.8% from the third quarter of 2023. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB4,801.7 million (US$676.3 million ) in the fourth quarter of 2023, representing a decrease of 5.2% from the fourth quarter of 2022 and an increase of 21.5% from the third quarter of 2023. Net loss for the full year of 2023 was RMB20,719.8 million (US$2,918.3 million ), compared with net loss of RMB14,437.1 million in 2022. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB18,350.7 million (US$2,584.6 million ) in 2023.Net loss attributable to NIO’s ordinary shareholders in the fourth quarter of 2023 was RMB 5,592.8 million (US$787.7 million ), representing a decrease of 4.3% from the fourth quarter of 2022 and an increase of 20.8% from the third quarter of 2023. 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 RMB 4,948.0 million (US$696.9 million ) in the fourth quarter of 2023. Net loss attributable to NIO’s ordinary shareholders for the full year of 2023 was RMB 21,147.0 million (US$2,978.5 million ). The net loss attributable to NIO’s ordinary shareholders was RMB14,559.4 million in 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 RMB18,474.8 million (US$2,602.1 million ) in 2023. Basic and diluted net loss per ordinary share/ADS in the fourth quarter of 2023 were both RMB3.18 (US$0.45) , compared with RMB3.55 in the fourth quarter of 2022 and RMB2.67 in the third quarter of 2023. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted basic and diluted net loss per share/ADS (non-GAAP) were both RMB2.81 (US$0.39) , compared with RMB3.07 in the fourth quarter of 2022 and RMB2.28 in the third quarter of 2023.Basic and diluted net loss per ADS for the full year of 2023 were both RMB12.44 (US$1.75) . 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 RMB10.87 (US$1.52) in 2023.Balance Sheet
Balance of cash and cash equivalents, restricted cash, short-term investment and long-term time deposits was RMB57.3 billion (US$8.1 billion ) as of December 31, 2023.Business Outlook
Deliveries of vehicles to be between 31,000 and 33,000 vehicles, representing a decrease of approximately 0.1% to an increase of approximately 6.3% from the same quarter of 2023.Total revenues to be between RMB10,499 million (US$1,479 million ) and RMB11,087 million (US$1,562 million ), representing a decrease of approximately 1.7% to an increase of approximately 3.8% from the same quarter of 2023.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
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/10037213-hg876t.html
A replay of the conference call will be accessible by phone at the following numbers, until March 12, 2024:
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: 10037213
About NIO Inc.
Safe Harbor Statement
Non-GAAP Disclosure
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 $1.00 , the noon buying rate in effect on December 29, 2023 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.
For more information, please visit: http://ir.nio.com.
Investor Relations Media Relations
Source: NIO
NIO INC. Unaudited Consolidated Balance Sheets As of December 31, 2022 December 31, 2023 December 31, 2023 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 19,887,575 32,935,111 4,638,813 Restricted cash 3,154,240 5,542,271 780,613 Short-term investments 19,171,017 16,810,107 2,367,654 Trade and notes receivables 5,118,170 4,657,652 656,017 Amounts due from related parties 1,380,956 1,722,603 242,624 Inventory 8,191,386 5,277,726 743,352 Prepayments and other current assets 2,246,408 3,434,763 483,776 Total current assets 59,149,752 70,380,233 9,912,849 Non-current assets: Long-term restricted cash 113,478 144,125 20,300 Property, plant and equipment, net. 15,658,666 24,847,004 3,499,627 Intangible assets, net — 29,648 4,176 Land use rights, net 212,603 207,299 29,197 Long-term investments 6,356,411 5,487,216 772,858 Right-of-use assets - operating lease 7,374,456 11,404,116 1,606,236 Other non-current assets 7,398,559 4,883,561 687,835 Total non-current assets 37,114,173 47,002,969 6,620,229 Total assets 96,263,925 117,383,202 16,533,078 LIABILITIES Current liabilities: Short-term borrowings 4,039,210 5,085,411 716,265 Trade and notes payable 25,223,687 29,766,134 4,192,472 Amounts due to related parties 384,611 561,625 79,103 Taxes payable 286,300 349,349 49,205 Current portion of operating lease liabilities 1,025,968 1,743,156 245,518 Current portion of long-term borrowings 1,237,916 4,736,087 667,064 Accruals and other liabilities 13,654,362 15,556,354 2,191,067 Total current liabilities 45,852,054 57,798,116 8,140,694 Non-current liabilities: Long-term borrowings 10,885,799 13,042,861 1,837,049 Non-current operating lease liabilities 6,517,096 10,070,057 1,418,338 Deferred tax liabilities 218,189 212,347 29,908 Other non-current liabilities 5,144,027 6,663,805 938,578 Total non-current liabilities 22,765,111 29,989,070 4,223,873 Total liabilities 68,617,165 87,787,186 12,364,567
NIO INC. Unaudited Consolidated Balance Sheets (All amounts in thousands) As of December 31, 2022 December 31, 2023 December 31, 2023 RMB RMB US$ MEZZANINE EQUITY Redeemable non-controlling interests 3,557,221 3,860,384 543,724 Total mezzanine equity 3,557,221 3,860,384 543,724 SHAREHOLDERS’ EQUITY Total NIO Inc. shareholders’ equity 23,868,165 25,546,233 3,598,111 Non-controlling interests 221,374 189,399 26,676 Total shareholders’ equity 24,089,539 25,735,632 3,624,787 Total liabilities, mezzanine equity and shareholders’ equity 96,263,925 117,383,202 16,533,078
NIO INC. Unaudited Consolidated Statements of Comprehensive Loss (All amounts in thousands, except for share and per share/ADS data) Three Months Ended December 31, 2022 September 30, 2023 December 31, 2023 December 31, 2023 RMB RMB RMB US$ Revenues: Vehicle sales 14,759,016 17,408,864 15,438,709 2,174,497 Other sales 1,304,498 1,657,687 1,664,467 234,435 Total revenues 16,063,514 19,066,551 17,103,176 2,408,932 Cost of sales: Vehicle sales (13,749,365 ) (15,491,494 ) (13,600,327 ) (1,915,566 ) Other sales (1,692,391 ) (2,051,734 ) (2,223,621 ) (313,190 ) Total cost of sales (15,441,756 ) (17,543,228 ) (15,823,948 ) (2,228,756 ) Gross profit 621,758 1,523,323 1,279,228 180,176 Operating expenses: Research and development (3,980,578 ) (3,039,089 ) (3,972,127 ) (559,462 ) Selling, general and administrative (3,527,371 ) (3,609,319 ) (3,972,706 ) (559,544 ) Other operating income 150,057 281,174 40,295 5,675 Total operating expenses (7,357,892 ) (6,367,234 ) (7,904,538 ) (1,113,331 ) Loss from operations (6,736,134 ) (4,843,911 ) (6,625,310 ) (933,155 ) Interest and investment income 351,960 288,014 1,368,062 192,688 Interest expenses (70,669 ) (88,546 ) (163,881 ) (23,082 ) Gain on extinguishment of debt 118,400 170,193 — — Share of income of equity investees 251,439 7,781 32,373 4,560 Other income/(losses), net 315,699 (88,645 ) 253,891 35,760 Loss before income tax expense (5,769,305 ) (4,555,114 ) (5,134,865 ) (723,229 ) Income tax expense (16,796 ) (1,610 ) (232,880 ) (32,800 ) Net loss (5,786,101 ) (4,556,724 ) (5,367,745 ) (756,029 ) Accretion on redeemable non-controlling interests to redemption value (72,581 ) (77,159 ) (78,767 ) (11,094 ) Net loss/(profit) attributable to non-controlling interests 11,603 5,254 (146,261 ) (20,600 ) Net loss attributable to ordinary shareholders of NIO Inc. (5,847,079 ) (4,628,629 ) (5,592,773 ) (787,723 ) Net loss (5,786,101 ) (4,556,724 ) (5,367,745 ) (756,029 ) Other comprehensive loss Change in unrealized losses related to available-for-sale debt securities, net of tax (24,495 ) — (770,560 ) (108,531 ) Change in unrealized gains on cash flow hedges 817 — — — Foreign currency translation adjustment, net of nil tax (134,783 ) (61,222 ) (200,131 ) (28,188 ) Total other comprehensive loss (158,461 ) (61,222 ) (970,691 ) (136,719 ) Total comprehensive loss (5,944,562 ) (4,617,946 ) (6,338,436 ) (892,748 ) Accretion on redeemable non-controlling interests to redemption value (72,581 ) (77,159 ) (78,767 ) (11,094 ) Net loss/(profit) attributable to non-controlling interests 11,603 5,254 (146,261 ) (20,600 ) Other comprehensive loss attributable to non-controlling interests 5,229 — 156,026 21,976 Comprehensive loss attributable to ordinary shareholders of NIO Inc. (6,000,311 ) (4,689,851 ) (6,407,438 ) (902,466 ) Weighted average number of ordinary shares/ADS used in computing net loss per share/ADS Basic and diluted 1,647,356,108 1,735,661,387 1,761,324,976 1,761,324,976 Net loss per share/ADS attributable to ordinary shareholders Basic and diluted (3.55 ) (2.67 ) (3.18 ) (0.45 )
NIO INC. Unaudited Consolidated Statements of Comprehensive Loss (All amounts in thousands, except for share and per share data) For the Year Ended December 31, 2022 2023 2023 RMB RMB US$ Revenues: Vehicle sales 45,506,581 49,257,270 6,937,741 Other sales 3,761,980 6,360,663 895,881 Total revenues 49,268,561 55,617,933 7,833,622 Cost of sales: Vehicle sales (39,271,801 ) (44,587,572 ) (6,280,028 ) Other sales (4,852,767 ) (7,978,565 ) (1,123,757 ) Total cost of sales (44,124,568 ) (52,566,137 ) (7,403,785 ) Gross profit 5,143,993 3,051,796 429,837 Operating expenses: Research and development (10,836,261 ) (13,431,399 ) (1,891,773 ) Selling, general and administrative (10,537,119 ) (12,884,556 ) (1,814,752 ) Other operating income 588,728 608,975 85,772 Total operating expenses (20,784,652 ) (25,706,980 ) (3,620,753 ) Loss from operations (15,640,659 ) (22,655,184 ) (3,190,916 ) Interest and investment income 1,358,719 2,210,018 311,275 Interest expenses (333,216 ) (403,530 ) (56,836 ) Gain on extinguishment of debt 138,332 170,193 23,971 Share of income of equity investees 377,775 64,394 9,070 Other (losses)/income, net (282,952 ) 155,191 21,858 Loss before income tax expense (14,382,001 ) (20,458,918 ) (2,881,578 ) Income tax expense (55,103 ) (260,835 ) (36,738 ) Net loss (14,437,104 ) (20,719,753 ) (2,918,316 ) Accretion on redeemable non-controlling interests to redemption value (279,355 ) (303,163 ) (42,700 ) Net loss/(profit) attributable to non-controlling interests 157,014 (124,051 ) (17,472 ) Net loss attributable to ordinary shareholders of NIO Inc. (14,559,445 ) (21,146,967 ) (2,978,488 ) Net loss (14,437,104 ) (20,719,753 ) (2,918,316 ) Other comprehensive income Change in unrealized gains/(losses) related to available-for-sale debt securities, net of tax 746,336 (770,560 ) (108,531 ) Foreign currency translation adjustment, net of nil tax 717,274 11,514 1,622 Total other comprehensive income/(loss) 1,463,610 (759,046 ) (106,909 ) Total comprehensive loss (12,973,494 ) (21,478,799 ) (3,025,225 ) Accretion on redeemable non-controlling interests to redemption value (279,355 ) (303,163 ) (42,700 ) Net loss/(profit) attributable to non-controlling interests 157,014 (124,051 ) (17,472 ) Other comprehensive (income)/loss attributable to non-controlling interests (151,299 ) 156,026 21,976 Comprehensive loss attributable to ordinary shareholders of NIO Inc. (13,247,134 ) (21,749,987 ) (3,063,421 ) Weighted average number of ordinary shares/ADS used in computing net loss per share Basic and diluted 1,636,999,280 1,700,203,886 1,700,203,886 Net loss per share/ADS attributable to ordinary shareholders Basic and diluted (8.89 ) (12.44 ) (1.75 )
NIO INC. Unaudited Reconciliation of GAAP and Non-GAAP Results (All amounts in thousands, except for share and per share/ADS data) Three Months Ended December 31, 2023 GAAP Result Share-based Accretion on redeemable Adjusted Result (Non-GAAP) RMB RMB RMB RMB Cost of sales (15,823,948 ) 19,120 — (15,804,828 ) Research and development expenses (3,972,127 ) 355,694 — (3,616,433 ) Selling, general and administrative expenses (3,972,706 ) 191,235 — (3,781,471 ) Total (23,768,781 ) 566,049 — (23,202,732 ) Loss from operations (6,625,310 ) 566,049 — (6,059,261 ) Net loss (5,367,745 ) 566,049 — (4,801,696 ) Net loss attributable to ordinary shareholders of NIO Inc. (5,592,773 ) 566,049 78,767 (4,947,957 ) Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB) (3.18 ) 0.33 0.04 (2.81 ) Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (USD) (0.45 ) 0.05 0.01 (0.39 )
Three Months Ended September 30, 2023 GAAP Result Share-based Accretion on redeemable Adjusted Result (Non-GAAP) RMB RMB RMB RMB Cost of sales (17,543,228 ) 22,197 — (17,521,031 ) Research and development expenses (3,039,089 ) 395,856 — (2,643,233 ) Selling, general and administrative expenses (3,609,319 ) 185,496 — (3,423,823 ) Total (24,191,636 ) 603,549 — (23,588,087 ) Loss from operations (4,843,911 ) 603,549 — (4,240,362 ) Net loss (4,556,724 ) 603,549 — (3,953,175 ) Net loss attributable to ordinary shareholders of NIO Inc. (4,628,629 ) 603,549 77,159 (3,947,921 ) Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB) (2.67 ) 0.35 0.04 (2.28 )
Three Months Ended December 31, 2022 GAAP Result Share-based Accretion on redeemable Adjusted Result (Non-GAAP) RMB RMB RMB RMB Cost of sales (15,441,756 ) 23,522 — (15,418,234 ) Research and development expenses (3,980,578 ) 426,701 — (3,553,877 ) Selling, general and administrative expenses (3,527,371 ) 270,257 — (3,257,114 ) Total (22,949,705 ) 720,480 — (22,229,225 ) Loss from operations (6,736,134 ) 720,480 — (6,015,654 ) Net loss (5,786,101 ) 720,480 — (5,065,621 ) Net loss attributable to ordinary shareholders of NIO Inc. (5,847,079 ) 720,480 72,581 (5,054,018 ) Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB) (3.55 ) 0.44 0.04 (3.07 )
NIO INC. Unaudited Reconciliation of GAAP and Non-GAAP Results (All amounts in thousands, except for share and per share data) Year Ended December 31, 2023 GAAP Result Share-based Accretion on redeemable Adjusted Result (Non-GAAP) RMB RMB RMB RMB Cost of sales (52,566,137 ) 83,972 — (52,482,165 ) Research and development expenses (13,431,399 ) 1,517,206 — (11,914,193 ) Selling, general and administrative expenses (12,884,556 ) 767,863 — (12,116,693 ) Total (78,882,092 ) 2,369,041 — (76,513,051 ) Loss from operations (22,655,184 ) 2,369,041 — (20,286,143 ) Net loss (20,719,753 ) 2,369,041 — (18,350,712 ) Net loss attributable to ordinary shareholders of NIO Inc. (21,146,967 ) 2,369,041 303,163 (18,474,763 ) Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB) (12.44 ) 1.39 0.18 (10.87 ) Net loss per ADS attributable to ordinary shareholders, basic and diluted (USD) (1.75 ) 0.20 0.03 (1.52 )
(All amounts in thousands, except for share and per share data) Year Ended December 31, 2022 GAAP Result Share-based Accretion on redeemable Adjusted Result (Non-GAAP) RMB RMB RMB RMB Cost of sales (44,124,568 ) 66,914 — (44,057,654 ) Research and development expenses (10,836,261 ) 1,323,370 — (9,512,891 ) Selling, general and administrative expenses (10,537,119 ) 905,612 — (9,631,507 ) Total (65,497,948 ) 2,295,896 — (63,202,052 ) Loss from operations (15,640,659 ) 2,295,896 — (13,344,763 ) Net loss (14,437,104 ) 2,295,896 — (12,141,208 ) Net loss attributable to ordinary shareholders of NIO Inc. (14,559,445 ) 2,295,896 279,355 (11,984,194 ) Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB) (8.89 ) 1.40 0.17 (7.32 )
i All translations from RMB to USD for the fourth quarter and full year of 2023 were made at the rate of RMB7.0999 to US$1.00 , the noon buying rate in effect on December 29, 2023 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 Except for gross margin and vehicle margin, where absolute changes instead of percentage changes are calculated.
NIO's total revenues for Q4 2023 were RMB17,103.2 million.
NIO delivered 50,045 vehicles in Q4 2023.
NIO's gross profit in Q4 2023 was RMB1,279.2 million.
NIO's net loss in Q4 2023 was RMB5,367.7 million.
NIO's loss from operations in Q4 2023 decreased by 1.6% compared to the previous quarter.
NIO's gross margin for the full year of 2023 was 5.5%.
