Nio guided for fourth-quarter vehicle deliveries in the range of 47,000 to 49,000, meaning it expects to deliver between 14,967 and 16,967 vehicles in December.
Nio (NYSE: NIO) saw record revenue, a rebound in gross margin and a narrowing of losses in the third quarter, in part because it exercised restraint with promotions amid stiff competition.
The company reported revenue of RMB 19.07 billion yuan ($2.61 billion) in the third quarter, a new high since its inception, although it fell short of Wall Street analysts' expectations of 19.37 billion yuan, according to its unaudited financial report released today.
That was up 46.64 percent year-on-year and up 117.36 percent from the second quarter. Revenue for the quarter fell within the guidance range of RMB 18.9 billion to RMB 19.52 billion that it had previously provided.
Nio delivered 55,432 vehicles in the third quarter, slightly above the lower end of its guidance range of 55,000 to 57,000 vehicles. Deliveries for the quarter were up 75.38 percent year-on-year and up 135.68 percent from the second quarter.
The company's revenue from vehicle sales in the third quarter was RMB 17.4 billion, up 45.9 percent year-on-year and up 142.3 percent from the second quarter, mainly attributable to higher vehicle deliveries.
Its cost of sales for the third quarter was RMB 17.5 billion, an increase of 55.7 percent year-on-year and up 102.0 percent from the second quarter.
The increase in cost of sales was primarily due to higher vehicle deliveries, power solution offerings, used vehicles and accessory sales, partially offset by lower unit battery costs.
Nio's gross profit for the third quarter was RMB 1.52 billion, a decrease of 12.2 percent year-on-year and an increase of 1,650.9 percent from the second quarter.
Its gross profit margin was 8.0 percent in the third quarter, compared to 13.3 percent in the third quarter of 2022 and 1.0 percent in the second quarter of 2023.
It had a vehicle margin of 11.0 percent in the third quarter, compared to 16.4 percent in the third quarter of 2022 and 6.2 percent in the second quarter of 2023.
The decrease in automotive margins compared to the third quarter of 2022 was primarily due to changes in product mix, partially offset by lower unit battery costs. The increase in automotive margins compared to the second quarter of 2023 was primarily due to changes in product mix and reduced promotional activity, Nio said.
Nio's third-quarter net loss was RMB 4.56 billion, up 10.8 percent year-on-year but down 24.8 percent from the second quarter.
Excluding share-based compensation expenses, adjusted net loss for the third quarter was RMB 3.95 billion, up 13.0 percent year-on-year and down 27.4 percent from the second quarter.
Its basic and diluted net loss per ADS for the third quarter were both RMB 2.67, compared to RMB 2.53 in the same period last year and RMB 3.70 in the second quarter.
Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, non-GAAP adjusted net loss per ADS, both basic and diluted, was RMB 2.28, compared to RMB 2.11 per ADS for the same period a year ago and RMB 3.28 per ADS for the second quarter.
Nio's research and development expenses in the third quarter were RMB 3.04 billion, an increase of 3.2 percent year-on-year and a decrease of 9.1 percent from the second quarter.
Excluding equity incentive expenses, non-GAAP R&D expenses were RMB 2.64 billion, an increase of 2.8 percent year-on-year and a decrease of 10.2 percent from the second quarter.
The slight increase in R&D expenses from the third quarter of 2022 was mainly due to higher personnel costs in the R&D function, partially offset by lower design development costs and deductions due to support for technological advancements.
The decrease in R&D expenses from the second quarter was primarily due to the support for technology advancement provided by local governmental authorities during the third quarter, Nio said.
By September 30, Nio's cash and cash equivalents, restricted cash, short-term investments and long-term time deposits were RMB 45.2 billion.
Nio guided fourth-quarter vehicle deliveries in the range of 47,000 to 49,000 units, implying year-on-year growth of about 17.3 percent to 22.3 percent.
It is guiding fourth-quarter revenue in the range of RMB 16.08 billion to RMB 16.7 billion, implying year-on-year growth of about 0.1 percent to 4.0 percent.
The guidance means Nio expects to deliver between 14,967 and 16,967 vehicles in December, considering it delivered 16,074 vehicles in October and 15,959 vehicles in November.
Earlier today, Nio's vehicle manufacturing partner, Anhui Jianghuai Automobile Group (JAC), said in a stock exchange announcement that the electric vehicle (EV) maker had agreed to purchase some of its factory assets.
Nio said in its third-quarter earnings report that it will acquire manufacturing equipment and assets for its F1 and F2 plants from JAC for a total consideration of about 3.16 billion yuan.
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