Nio posts 1.8 billion yuan loss in unaudited Q1 results

CHINESE electric vehicle maker Nio registered 1.8 billion yuan (S$370 million) in losses for the first quarter of 2022, narrowing 62.6 per cent year on year.

Total revenue was up 24.2 per cent year on year to 9.9 billion yuan on higher vehicle sales.

Nio, which announced its unaudited financial results on Thursday (Jun 9), said it logged 25,768 in quarterly deliveries, a record high and up 28.5 per cent from the year-ago period.

Vehicle sales brought in 9.2 billion yuan, up 24.8 per cent from the year-ago period, but vehicle margin stood at 18.1 per cent in the quarter, compared with 21.2 per cent in the first quarter last year.

Research and development expenses jumped 156.6 per cent year on year to 1.8 billion yuan. The company attributed the increase to higher personnel costs as well as incremental design and development costs for new products and technologies. These expenses remained relatively stable, quarter on quarter.

Selling, general and administrative expenses also rose, up 68.3 per cent year on year to 2 billion yuan.

Basic and diluted net loss per ordinary share stood at 1.12 yuan, compared with 3.14 yuan in the first quarter last year, and 1.36 yuan in the previous quarter, Q4 2021.

William Bin, Nio’s founder, chairman and chief executive officer, said the company saw “robust demand” for its complementary products despite supply-chain volatility and Covid-19 resurgence, and registered an all-time high order inflow in May 2022.

Chief financial officer Steven Wei said the company’s debut on the Singapore bourse on May 20 strengthens its footing in the global capital markets.

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He noted that the company has been working with supply-chain partners to increase production capacity and accelerate vehicle delivery since the beginning of June.

“While making decisive investments in new products, technologies and businesses, we strive to continuously optimise our cost structure, improve operating efficiency and create long-term value for our shareholders,” he said.

The company expects to clock between 23,000 and 25,000 in vehicle deliveries for the second quarter. It is also expecting revenue for Q2 to fall between 9.3 billion and 10.1 billion yuan, representing a year-on-year increase of about 10.6 per cent to 19.4 per cent.

Nio shares closed 0.1 per cent or US$0.03 lower at US$20.33 on Thursday, before the announcement.