Nio shares surge 11% pre-market as it sees lowest operating loss in Q2

Nio's financial report today showed a huge increase in revenue and a positive gross margin in the second quarter. After the results were announced, its shares surged in pre-market trading hours.

Nio's second-quarter revenue of 3.72 billion yuan was up 146.5 percent compared to the same period last year. Compared to the first quarter, it was up 171.1 percent.

The figure was also higher than the 3.49 billion yuan that Wall Street was expecting.

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Nio managed to turn a positive gross profit of 3.131 billion yuan in the second quarter, with a gross margin of 8.4 percent.

In the second quarter of last year, Nio's gross margin was -33.4 percent and in the first quarter of this year it was -12.2 percent.

Nio's automotive sales contributed 3.486 billion yuan in the second quarter, an increase of 146.5 percent year-over-year.

Nio's auto sales gross margin was 9.7 percent, the highest on record, compared to -24.1 percent in the same period last year and -7.4 percent in the first quarter of this year.

Following the earnings release, Nio's pre-market share price was up by more than 11 percent.

In the second quarter, Nio posted an operating loss of 1.16 billion yuan, its lowest ever. It also narrowed its loss by 64 percent year-over-year and 26.1 percent from the previous quarter.

The operating loss under non-GAAP was RMB 1.115 billion, a 64.4 percent narrower loss year-over-year and 27.5 percent narrower from the previous quarter.

Nio's net loss for the second quarter was 1.177 billion yuan, a loss that narrowed 64.2 percent year-on-year and 30.4 percent from the previous quarter.

Nio's second quarter net loss attributable to common shareholders of the parent company was 1.208 billion yuan, a loss that narrowed 63.6 percent year over year and 29.9 percent from the previous quarter.

Nio's second quarter vehicle deliveries were 10,331 compared to 3,553 in the same period last year; 2,263 of which were ES8 deliveries and 8,068 were ES6 deliveries.

Nio expected 11,000-11,500 car deliveries in the third quarter. It also expects third-quarter revenue of CNY4.05-4.21 billion, higher than Wall Street analysts' estimates of CNY3.88 billion.

Nio achieved its lowest operating loss ever and its operating cash flow turned positive for the first time ever, said Li Bin, said Nio's founder, chairman and CEO, adding the company will continue to focus on improving operational efficiency across the company in the future.