NIO outlines RMB 1.42B IFRS loss for H1 2026

Q: What does NIO (NIO) disclose in this September 2026 Form 6-K?

NIO discloses a reconciliation between its U.S. GAAP financials and IFRS Accounting Standards for the six months ended June 30, 2026, including differences in net loss, balance sheet items, and key accounting treatments required for its Hong Kong Stock Exchange listing.

Q: What is NIO (NIO)’s net loss under U.S. GAAP and IFRS for H1 2026?

For the six months ended June 30, 2026, NIO reports a net loss of RMB 860,091 thousand under U.S. GAAP and RMB 1,424,341 thousand under IFRS Accounting Standards, after applying adjustments for items such as convertible notes, share-based compensation, and other accounting differences.

Q: How do NIO (NIO)’s total assets differ under U.S. GAAP and IFRS at June 30, 2026?

As of June 30, 2026, NIO’s total assets are RMB 136,211,340 thousand under U.S. GAAP and RMB 135,649,988 thousand under IFRS, reflecting reclassifications and measurement differences in items such as financial instruments, right-of-use assets, and software.

Q: What is NIO (NIO)’s shareholders’ equity under IFRS at June 30, 2026?

Under IFRS Accounting Standards, NIO reports total shareholders’ equity of RMB 5,387,386 thousand as of June 30, 2026, compared with RMB 5,526,565 thousand as of December 31, 2025, after reclassifying redeemable non-controlling interests and other IFRS adjustments.

Q: Which main accounting areas differ for NIO (NIO) between U.S. GAAP and IFRS?

Key differences include share-based compensation (graded vesting vs straight-line/QIPO treatment), convertible notes (fair value through profit or loss vs amortized cost), capped call options, mezzanine equity vs financial liabilities, investment classifications, lease accounting, warranty accrual, and software presentation.

Q: Did NIO (NIO) obtain external assurance on the reconciliation statement?

Yes. PricewaterhouseCoopers in Hong Kong performed a limited assurance engagement on the Reconciliation Statement in accordance with International Standard on Assurance Engagements 3000 (Revised), covering the adjustments from U.S. GAAP to IFRS Accounting Standards.

Filing Impact

(Neutral)

Filing Sentiment

(Neutral)

Form Type

6-K

Rhea-AI Filing Summary

NIO Inc. (NIO) furnished a report providing a detailed reconciliation between its consolidated financial statements prepared under U.S. GAAP and those prepared under IFRS Accounting Standards, as required for its secondary listing on the Hong Kong Stock Exchange.

For the six months ended June 30, 2026, NIO reported a net loss of RMB 860,091 thousand under U.S. GAAP, compared with RMB 1,424,341 thousand under IFRS Accounting Standards, reflecting adjustments mainly related to share-based compensation, convertible notes measured at fair value, capped call options, redeemable non-controlling interests, investment classifications, lease accounting, warranty accruals, and software presentation. As of June 30, 2026, total assets were RMB 136,211,340 thousand under U.S. GAAP and RMB 135,649,988 thousand under IFRS, with total shareholders’ equity of RMB 5,387,386 thousand under IFRS.

Key Figures

Net loss under U.S. GAAP (H1 2026): RMB 860,091 thousand Net loss under IFRS Accounting Standards (H1 2026): RMB 1,424,341 thousand Total comprehensive loss under IFRS Accounting Standards attributable to ordinary shareholders (H1 2026): RMB 1,576,297 thousand +4 more

7 metrics

Net loss under U.S. GAAP (H1 2026) RMB 860,091 thousand For the six months ended June 30, 2026

Net loss under IFRS Accounting Standards (H1 2026) RMB 1,424,341 thousand For the six months ended June 30, 2026 after IFRS adjustments

Total comprehensive loss under IFRS Accounting Standards attributable to ordinary shareholders (H1 2026) RMB 1,576,297 thousand For the six months ended June 30, 2026

Total assets under U.S. GAAP RMB 136,211,340 thousand As of June 30, 2026

Total assets under IFRS Accounting Standards RMB 135,649,988 thousand As of June 30, 2026 after IFRS adjustments

Total shareholders’ equity under IFRS Accounting Standards RMB 5,387,386 thousand As of June 30, 2026

Total shareholders’ equity under IFRS Accounting Standards (prior year-end) RMB 5,526,565 thousand As of December 31, 2025

Key Terms

Reconciliation Statement, mezzanine-equity, financial assets at fair value through profit or loss, fair value through other comprehensive income or loss (FVOCI), +2 more

6 terms

Reconciliation Statement financial

"the reconciliation statement of the unaudited condensed consolidated statement"

mezzanine-equity financial

"SEC guidance provides for mezzanine-equity (temporary equity) category"

financial assets at fair value through profit or loss financial

"recognized as financial assets at fair value through profit or loss such that"

An accounting category for investments and contracts that are updated to their current market price on the balance sheet, with any gain or loss immediately shown in the company’s profit or loss statement. Investors care because this treatment makes reported earnings swing with market prices, so short-term market moves can boost or cut reported profits quickly — like revaluing a garage full of cars at today’s resale prices and recording the change as income or loss.

fair value through other comprehensive income or loss (FVOCI) financial

"measure the investments in equity instruments at fair value through other comprehensive income or loss (FVOCI)"

right-of-use assets financial

"Under IFRS Accounting Standards, the right-of-use assets are generally depreciated"

Right-of-use assets are the rights a company gains to use a physical space or equipment under a lease agreement. They are recorded as assets on the company's balance sheet, reflecting the value of future benefits from the leased item. For investors, these assets provide a clearer picture of a company's obligations and resources related to leasing arrangements, helping to assess its financial health and operational commitments.

warranty accrual financial

"Under U.S. GAAP, warranty accrual is generally recorded at the amount"

FAQ

What does NIO (NIO) disclose in this September 2026 Form 6-K?

NIO discloses a reconciliation between its U.S. GAAP financials and IFRS Accounting Standards for the six months ended June 30, 2026, including differences in net loss, balance sheet items, and key accounting treatments required for its Hong Kong Stock Exchange listing.

What is NIO (NIO)’s net loss under U.S. GAAP and IFRS for H1 2026?

For the six months ended June 30, 2026, NIO reports a net loss of RMB 860,091 thousand under U.S. GAAP and RMB 1,424,341 thousand under IFRS Accounting Standards, after applying adjustments for items such as convertible notes, share-based compensation, and other accounting differences.

How do NIO (NIO)’s total assets differ under U.S. GAAP and IFRS at June 30, 2026?

As of June 30, 2026, NIO’s total assets are RMB 136,211,340 thousand under U.S. GAAP and RMB 135,649,988 thousand under IFRS, reflecting reclassifications and measurement differences in items such as financial instruments, right-of-use assets, and software.

What is NIO (NIO)’s shareholders’ equity under IFRS at June 30, 2026?

Under IFRS Accounting Standards, NIO reports total shareholders’ equity of RMB 5,387,386 thousand as of June 30, 2026, compared with RMB 5,526,565 thousand as of December 31, 2025, after reclassifying redeemable non-controlling interests and other IFRS adjustments.

Which main accounting areas differ for NIO (NIO) between U.S. GAAP and IFRS?

Key differences include share-based compensation (graded vesting vs straight-line/QIPO treatment), convertible notes (fair value through profit or loss vs amortized cost), capped call options, mezzanine equity vs financial liabilities, investment classifications, lease accounting, warranty accrual, and software presentation.

Did NIO (NIO) obtain external assurance on the reconciliation statement?

Yes. PricewaterhouseCoopers in Hong Kong performed a limited assurance engagement on the Reconciliation Statement in accordance with International Standard on Assurance Engagements 3000 (Revised), covering the adjustments from U.S. GAAP to IFRS Accounting Standards.

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Available on EDGAR 09/01/2026 - 07:19 AM Accepted by SEC EDGAR 09/01/2026 - 07:19 AM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of September 2026

Commission File Number: 001-38638

NIO Inc.

(Registrant’s Name)

Building 19, No. 1355, Caobao Road, Minhang District
Shanghai, People’s Republic of China

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F x Form 40-F o

EXPLANATORY NOTE

On September 1, 2026, Hong Kong time, we published our unaudited financial results for the second quarter and six months ended June 30, 2026 as our interim report for the six months ended June 30, 2026 (the “HK Interim Report”) under Rule 13.48(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Hong Kong Listing Rules”) on the website of The Stock Exchange of Hong Kong Limited. Pursuant to the Hong Kong Listing Rules, our HK Interim Report contains supplemental disclosure of reconciliation of the material differences between our consolidated financial statements prepared under U.S. GAAP and International Financial Reporting Standards, which is attached hereto as exhibit 99.1.

EXHIBIT INDEX

Exhibit No.		Description
99.1		Supplemental Disclosure—Reconciliation Between U.S. GAAP and International Financial Reporting Standards

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	NIO Inc.

	By:	/s/ Yu Qu
	Name:	Yu Qu
	Title:	Chief Financial Officer

Date: September 1, 2026

Exhibit 99.1

Reconciliation between U.S. GAAP and IFRS Accounting Standards

The Company’s consolidated financial statements for its primary listing in the United States are prepared in accordance with the accounting principles generally accepted in the United States of America (the “U.S. GAAP”). As a secondary listed issuer of the Hong Kong Stock Exchange, the Company is required to include a reconciliation statement in our annual financial statements starting from the first full financial year commencing on or after January 1, 2022, and in all subsequent financial statements (including interim financial statements).

For our interim reporting with the Hong Kong Stock Exchange for the six month period ended June 30, 2026, we have prepared and included as Appendix, the reconciliation statement of the unaudited condensed consolidated statement of comprehensive loss for the six months ended June 30, 2026 and the unaudited condensed consolidated balance sheets as of June 30, 2026 of the Company, its subsidiaries and consolidated VIEs (collectively referred to as “the Group”) between the accounting policies adopted by the Group of the relevant period in accordance with U.S. GAAP and IFRS Accounting Standards as issued by the International Accounting Standards Board (together, the “Reconciliation Statement”).

PricewaterhouseCoopers, the auditor of the Company in Hong Kong, has performed a limited assurance engagement on the Reconciliation Statement in accordance with International Standard on Assurance Engagements 3000 (Revised) “Assurance Engagements Other Than Audits or Reviews of Historical Financial Information”.

Appendix

Reconciliation between U.S. GAAP and IFRS Accounting Standards

The unaudited consolidated condensed statement of comprehensive loss and the unaudited condensed consolidated balance sheets are prepared in accordance with U.S. GAAP, which differ in certain respects from IFRS Accounting Standards. The effects of material differences between the unaudited interim condensed consolidated financial information of the Group prepared under U.S. GAAP and IFRS Accounting Standards are as follows:

Reconciliation of unaudited condensed consolidated statement of comprehensive loss

	For the six months ended June 30, 2026
	Amounts under U.S. GAAP			IFRS adjustments																							Amounts under IFRS Accounting Standards
				RMB (in thousands)
				Share-based compensation			Convertible notes			Derivative financial instrument- capped call options		Redeemable non- controlling interests			Available- for-sale debt securities		Equity securities without readily determinable fair value		Leases			Warranty Accrual			Software
					Note (i)			Note (ii)			Note (iii)		Note (iv)			Note (v)		Note (vi)		Note (vii)			Note (viii)			Note (ix)
Cost of revenues		(46,903,889	)		2,314			-			-		-			-		-		131,997			136,370			-		(46,633,208	)
Research and development		(4,029,942	)		(172,037	)		-			-		-			-		-		13,858			-			-		(4,188,121	)
Selling, general and administrative		(7,921,822	)		124,837			-			-		-			-		-		71,442			-			-		(7,725,543	)
Loss from operations		(656,030	)		(44,886	)		-			-		-			-		-		217,297			136,370			-		(347,249	)
Interest expenses		(456,794	)		-			176,518			-		(357,312	)		-		-		(235,542	)		(83,909	)		-		(957,039	)
Fair value changes of convertible notes		-			-			(372,786	)		-		-			-		-		-			-			-		(372,786	)
Loss before income tax expense		(815,140	)		(44,886	)		(196,268	)		-		(357,312	)		-		-		(18,245	)		52,461			-		(1,379,390	)
Net loss		(860,091	)		(44,886	)		(196,268	)		-		(357,312	)		-		-		(18,245	)		52,461			-		(1,424,341	)

	For the six months ended June 30, 2026
	Amounts under U.S. GAAP			IFRS adjustments																						Amounts under IFRS Accounting Standards
				RMB (in thousands)
				Share-based compensation			Convertible notes			Derivative financial instrument- capped call options		Redeemable non- controlling interests			Available- for-sale debt securities		Equity securities without readily determinable fair value		Leases			Warranty Accrual		Software
					Note (i)			Note (ii)			Note (iii)		Note (iv)			Note (v)		Note (vi)		Note (vii)			Note (viii)		Note (ix)
Fair value change on convertible notes due to own credit risk		-			-			118,097			-		-			-		-		-			-		-		118,097
Total other comprehensive income		(269,857	)		-			118,097			-		-			-		-		-			-		-		(151,760	)
Total comprehensive loss		(1,129,948	)		(44,886	)		(78,171	)		-		(357,312	)		-		-		(18,245	)		52,461		-		(1,576,101	)
Accretion on redeemable non-controlling interests to redemption value		(357,312	)		-			-			-		357,312			-		-		-			-		-		-
Comprehensive loss attributable to ordinary shareholders of NIO Inc.		(1,487,456	)		(44,886	)		(78,171	)		-		-			-		-		(18,245	)		52,461		-		(1,576,297	)

	For the six months ended June 30, 2025
	Amounts under U.S. GAAP			IFRS adjustments																						Amounts under IFRS Accounting Standards
				RMB (in thousands)
				Share-based compensation		Convertible notes			Derivative financial instrument- capped call options		Redeemable non- controlling interests			Available- for-sale debt securities		Equity securities without readily determinable fair value		Leases			Warranty Accrual			Software
					Note (i)		Note (ii)			Note (iii)		Note (iv)			Note (v)		Note (vi)		Note (vii)			Note (viii)			Note (ix)
Cost of revenues		(28,226,317	)		10,547		-			-		-			-		-		82,627			10,372			-		(28,122,771	)
Research and development		(6,188,435	)		378,719		-			-		-			-		-		27,122			-			-		(5,782,594	)
Selling, general and administrative		(8,365,684	)		135,405		-			-		-			-		-		169,792			-			-		(8,060,487	)
Loss from operations		(11,326,986	)		524,671		-			-		-			-		-		279,541			10,372			-		(10,512,402	)
Interest and investment income		280,745			-		(56,296	)		-		-			-		3,511		-			-			-		227,960
Interest expenses		(457,610	)		-		183,497			-		(292,864	)		-		-		(282,624	)		(72,359	)		-		(921,960	)
Loss on extinguishment of debt		(14,660	)		-		14,660			-		-			-		-		-			-			-		-
Fair value changes of convertible notes		-			-		(154,151	)		-		-			-		-		-			-			-		(154,151	)
Loss before income tax expense		(11,697,264	)		524,671		(12,290	)		-		(292,864	)		-		3,511		(3,083	)		(61,987	)		-		(11,539,306	)
Net loss		(11,744,834	)		524,671		(12,290	)		-		(292,864	)		-		3,511		(3,083	)		(61,987	)		-		(11,586,876	)

	For the six months ended June 30, 2025
	Amounts under U.S. GAAP			IFRS adjustments																						Amounts under IFRS Accounting Standards
				RMB (in thousands)
				Share-based compensation		Convertible notes		Derivative financial instrument -capped call options		Redeemable non- controlling interests			Available -for-sale debt securities		Equity securities without readily determinable fair value			Leases			Warranty Accrual			Software
					Note (i)		Note (ii)		Note (iii)		Note (iv)			Note (v)		Note (vi)			Note (vii)			Note (viii)			Note (ix)
Fair value change on convertible notes due to own credit risk		-			-		88,230		-		-			-		-			-			-			-		88,230
Changes in the fair value of equity instruments at fair value through other comprehensive income or loss		-			-		-		-		-			-		(3,511	)		-			-			-		(3,511	)
Total other comprehensive income		260,479			-		88,230		-		-			-		(3,511	)		-			-			-		345,198
Total comprehensive loss		(11,484,355	)		524,671		75,940		-		(292,864	)		-		-			(3,083	)		(61,987	)		-		(11,241,678	)
Accretion on redeemable non-controlling interests to redemption value		(292,864	)		-		-		-		292,864			-		-			-			-			-		-
Comprehensive loss attributable to ordinary shareholders of NIO Inc.		(11,771,889	)		524,671		75,940		-		-			-		-			(3,083	)		(61,987	)		-		(11,236,348	)

Reconciliation of unaudited condensed consolidated balance sheets

	As of June 30, 2026
	Amounts under U.S. GAAP			IFRS adjustments																											Amounts under IFRS Accounting Standards
				RMB (in thousands)
				Share-based compensation			Convertible notes			Derivative financial instrument- capped call options			Redeemable non- controlling interests			Available -for-sale debt securities			Equity securities without readily determinable fair value			Leases			Warranty Accrual			Software
					Note (i)			Note (ii)			Note (iii)			Note (iv)			Note (v)			Note (vi)			Note (vii)			Note (viii)			Note (ix)
Financial assets at fair value through profit or loss		-			-			-			-			-			967,503			-			-			-			-			967,503
Financial assets at fair value through other comprehensive income or loss		-			-			-			-			-			-			187			-			-			-			187
Property, plant and equipment, net		25,251,240			-			-			-			-			-			-			-			-			(149,262	)		25,101,978
Intangible assets, net		173,212			-			-			-			-			-			-			-			-			149,262			322,474
Long-term investments		2,340,908			-			-			-			-			(967,503	)		(187	)		-			-			-			1,373,218
Right-of-use assets		10,957,091			-			-			-			-			-			-			(561,352	)		-			-			10,395,739
Total assets		136,211,340			-			-			-			-			-			-			(561,352	)		-			-			135,649,988
Current portion of long-term borrowings		897,712			-			(1,448	)		-			-			-			-			-			-			-			896,264
Accruals and other liabilities		15,371,799			-			(68,836	)		-			-			-			-			-			-			-			15,302,963
Financial liabilities measured at amortized cost		-			-			-			-			10,222,746			-			-			-			-			-			10,222,746
Financial liabilities at fair value through profit or loss		-			-			6,644,115			-			-			-			-			-			-			-			6,644,115
Long-term borrowings		8,550,926			-			(7,756,532	)		-			-			-			-			-			-			-			794,394
Other non-current liabilities		15,029,869			-			-			-			-			-			-			-			(720,558	)		-			14,309,311
Total liabilities		121,943,115			-			(1,182,701	)		-			10,222,746			-			-			-			(720,558	)		-			130,262,602
Redeemable non-controlling interests		10,222,746			-			-			-			(10,222,746	)		-			-			-			-			-			-
Mezzanine equity		10,222,746			-			-			-			(10,222,746	)		-			-			-			-			-			-
Additional paid-in capital		132,774,453			391,998			-			(614,849	)		8,985,339			-			-			-			-			-			141,536,941
Accumulated other comprehensive loss		309,943			-			(389,533	)		-			-			-			62,540			-			-			-			(17,050	)
Accumulated deficit		(128,889,318	)		(391,998	)		1,572,234			614,849			(8,985,339	)		-			(62,540	)		(561,352	)		720,558			-			(135,982,906	)
Total shareholders’ equity		4,045,479			-			1,182,701			-			-			-			-			(561,352	)		720,558			-			5,387,386

	As of December 31, 2025
	Amounts under U.S. GAAP			IFRS adjustments																											Amounts under IFRS Accounting Standards
				RMB (in thousands)
				Share-based compensation			Convertible notes			Derivative financial instrument- capped call options			Redeemable non- controlling interests			Available- for-sale debt securities			Equity securities without readily determinable fair value			Leases			Warranty Accrual			Software
					Note (i)			Note (ii)			Note (iii)			Note (iv)			Note (v)			Note (vi)			Note (vii)			Note (viii)			Note (ix)
Financial assets at fair value through profit or loss		-			-			-			-			-			979,071			-			-			-			-			979,071
Financial assets at fair value through other comprehensive income or loss		-			-			-			-			-			-			362,687			-			-			-			362,687
Property, plant and equipment, net		25,827,968			-			-			-			-			-			-			-			-			(201,011	)		25,626,957
Intangible assets, net		29,648			-			-			-			-			-			-			-			-			201,011			230,659
Long-term investments		2,480,518			-			-			-			-			(979,071	)		(362,687	)		-			-			-			1,138,760
Right-of-use assets		11,711,306			-			-			-			-			-			-			(543,107	)		-			-			11,168,199
Total assets		124,401,078			-			-						-			-			-			(543,107	)		-			-			123,857,971
Current portion of long-term borrowings		655,971			-			(6,409	)		-			-			-			-			-			-			-			649,562
Accruals and other liabilities		16,696,044			-			(71,042	)		-			-			-			-			-			-			-			16,625,002
Financial liabilities at fair value through profit or loss		-			-			-			-			8,551,854			-			-			-			-			-			8,551,854
Financial liabilities measured at amortized cost		-			-			6,814,288			-			-			-			-			-			-			-			6,814,288
Long-term borrowings		8,626,272			-			(7,997,709	)		-			-			-			-			-			-			-			628,563
Other non-current liabilities		13,690,778			-			-			-			-			-			-			-			(668,097	)		-			13,022,681
Total liabilities		111,708,521			-			(1,260,872	)		-			8,551,854			-			-			-			(668,097	)		-			118,331,406
Redeemable non-controlling interests		8,551,854			-			-			-			(8,551,854	)		-			-			-			-			-			-
Mezzanine equity		8,551,854			-			-			-			(8,551,854	)		-			-			-			-			-			-
Additional paid-in capital		131,728,259			347,112			-			(614,849	)		8,628,027			-			-			-			-			-			140,088,549
Accumulated other comprehensive loss		579,799			-			(507,630	)		-			-			-			62,540			-			-			-			134,709
Accumulated deficit		(128,029,031	)		(347,112	)		1,768,502			614,849			(8,628,027	)		-			(62,540	)		(543,107	)		668,097			-			(134,558,369	)
Total shareholders’ equity		4,140,703			-			1,260,872			-			-			-			-			(543,107	)		668,097			-			5,526,565

Basis of Preparation

The Directors of the Company are responsible for preparation of the Reconciliation Statement in accordance with the relevant requirements of the HKEX Guidance Letter HKEX-GL111-22. The Reconciliation Statement was prepared based on the Group’s unaudited interim condensed consolidated financial information for the six months ended June 30, 2026 prepared under U.S. GAAP, with adjustments made thereto in arriving at the unaudited financial information of the Group prepared under IFRS Accounting Standards. The adjustments reflect the differences between the Group’s accounting policies under U.S. GAAP and IFRS Accounting Standards.

(i)

Share-based compensation

Attribution – awards with graded-vesting features

Under U.S. GAAP, the Group has elected to recognize compensation expense using the straight-line method for all employee equity awards granted with graded vesting over the requisite service period.

Under IFRS Accounting Standards, the graded vesting method is required to recognize compensation expense for all employee equity awards granted with graded vesting.

Awards with performance targets

Under U.S. GAAP, the fulfilment of a qualified initial public offering (the “QIPO”) is a performance vesting condition and such condition is generally not considered probable until it actually occurs. Accordingly, related share-based compensation expense for these awards with QIPO condition would not be recognized until an IPO occurs.

Under IFRS Accounting Standards, the estimation of the QIPO completion date is required to determine the actual vesting period, and Company recognized share-based compensation expenses over the longer of: (1) the period derived from the estimated IPO completion date, or (2) the original vesting period.

(ii)

Convertible notes

Under U.S. GAAP, the convertible notes are measured at amortized cost, with any difference between the initial carrying value and the repayment amount recognized as interest expense using effective interest method over the period from issuance date to maturity date.

Under IFRS Accounting Standards, the Group’s convertible notes are designated as at fair value through profit or loss such that the convertible notes are initially recognized at fair value. Subsequent to initial recognition, the amounts of changes in fair value of the convertible notes that are attributed to changes in own credit risk are presented in other comprehensive income and the remaining fair value changes are presented in the profit or loss.

(iii)

Derivative financial instruments-capped call options

Under U.S. GAAP, the costs for the capped call options are recorded as deduction of additional paid-in capital within total shareholders’ deficit.

Under IFRS Accounting Standards, the capped call options are recognized as financial assets at fair value through profit or loss such that they are initially recognized at fair value and subsequent to initial recognition, the amounts of changes in fair value are recognized in the profit or loss.

(iv)

Redeemable non-controlling interests

Under U.S. GAAP, SEC guidance provides for mezzanine-equity (temporary equity) category in addition to the financial liability and permanent equity categories. The purpose of this “in-between” category is to indicate that a security may not be a permanent part of equity. The Group classifies the redeemable non-controlling interests as mezzanine equity in the consolidated balance sheets and are recorded initially at fair value, net of issuance costs. The Group recognizes accretion to the respective redemption value of the redeemable non-controlling interests over the period starting from issuance date to the earliest redemption date.

Under IFRS Accounting Standards, the Group’s obligation to purchase its own equity instruments for cash is recognized as a financial liability initially at the present value of the redemption amount and reclassified from equity. Subsequently, the financial liability is measured at amortized cost using the effective interest rate method.

(v)

Available-for-sale debt securities

Under U.S. GAAP, the Group reports available-for-sale debt securities measured at fair value at each balance sheet date with the aggregate unrealized gains and losses, net of tax, reflected in other comprehensive income.

Under IFRS Accounting Standards, since those debt investments could not meet the definition of the equity instrument from the perspective of issuer, and the contractual cashflow of these financial assets does not represent solely payments of principal and interest, thus they should be reclassified from long-term investments to financial assets measured at fair value through profit or loss such that they are initially recognized at fair values and subsequent to initial recognition, the amounts of changes in fair value are recognized in the profit or loss.

(vi)

Equity securities without readily determinable fair value

Under U.S. GAAP, the Group elected to measure an equity security without a readily determinable fair value using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes.

Under IFRS Accounting Standards, the Group elected to measure the investments in equity instruments at fair value through other comprehensive income or loss (FVOCI). Fair value changes of these investments were recognized in the other comprehensive income or loss.

(vii)

Leases

Under U.S. GAAP, for operating leases, the amortization of right-of-use assets and the interest expense element of lease liabilities are recorded together as lease expenses, which results in a straight-line recognition effect in profit or loss.

Under IFRS Accounting Standards, the right-of-use assets are generally depreciated on a straight-line basis while the interest expense related to the lease liabilities are measured under the effective interest method, which results in higher expenses in earlier periods and lower expenses in later periods. The amortization of the right-of-use assets is recorded as lease expense and the interest expense is required to be presented in separate line item.

(viii)

Warranty accrual

Under U.S. GAAP, warranty accrual is generally recorded at the amount that will be paid to settle the provisions and there is a policy choice to discount the warranty accrual. The Group elects to record the warranty accrual without considering the discount of the provisions.

Under IFRS Accounting Standards, there is no accounting policy choice and the initial amount of the warranty accrual is the present value of the anticipated cash flows expected to be required to settle the obligation. The carrying amount of the warranty accrual increases in each period to reflect the passage of time with said increase recognized as an interest expense.

(ix)

Software

Under U.S. GAAP, software is not presented as intangible assets and so the Group records software in property, plant and equipment.

Under IFRS Accounting Standards, software is reported under the intangible assets category. Accordingly, software is reclassified from property, plant and equipment to intangible assets.

Source: View Original Filing on SEC EDGAR

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