Nio sinks deeper into the red, posts 4.6 billion yuan net loss for Q3

ELECTRIC vehicle player Nio sank deeper into the red in the third quarter of FY2023 to September, reporting a net loss of 4.6 billion yuan (S$868.7 million) on higher cost of sales and operating expenses.

For the corresponding quarter of FY2022, it posted 4.1 billion yuan in net loss, based on the financial results it published in a regulatory filing on Tuesday (Dec 5).

Translating into a per-share basis, Q3 FY2023 loss was 2.67 yuan, compared with a loss of 2.53 yuan for the year-ago period.

The wider loss came despite Nio having made 75.4 per cent more deliveries, or 55,432 vehicles in total, in the third quarter.

Although Nio’s revenue climbed 46.6 per cent year on year to 19.1 billion yuan, the rise was outstripped by the 55.7 per cent surge in cost of sales. Thus, gross margin dropped to 8 per cent from 13.3 per cent in Q3 FY2022.

Meanwhile, its operating expenses were 13.6 per cent higher.

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Li Bin, Nio’s chief executive officer, said: “According to retail sales data from China Automotive Technology and Research Center, Nio ranked first in the battery electric vehicle market segment priced over 300,000 yuan in China, with a market share of 45 per cent in the third quarter of 2023.”

Nio expects to deliver 47,000 to 49,000 vehicles in Q4, and also projects revenue to improve to between 16.1 billion yuan and 16.7 billion yuan in the period.

The counter closed 0.9 per cent higher at US$7.19 on Tuesday, before the results were announced.