- Nio's net loss in the fourth quarter was a record RMB 7.11 billion yuan, an increase of 40.6 percent from the third quarter, as SG&A expenses hit a record high.
- Nio said its current liabilities exceeded its current assets, but that it had sufficient funds to support operations over the next 12 months.
Nio (NYSE: NIO) saw a record net loss last quarter, as selling, general and administrative (SG&A) expenses hit a record high, although gross margins improved slightly.
The electric vehicle (EV) maker's net loss in the fourth quarter was RMB 7.11 billion yuan ($974 million), a year-on-year increase of 32.5 percent and an increase of 40.6 percent compared with the third quarter, according to the unaudited financial report released today.
The adjusted non-GAAP net loss in the fourth quarter was RMB 6.62 billion yuan, a year-on-year increase of 37.9 percent and an increase of 50.1 percent from the third quarter.
The company saw a net other loss of RMB 527.5 million yuan in the fourth quarter, compared with other income of RMB 253.9 million yuan in the fourth quarter of 2023 and 309.7 million yuan in the third quarter of 2024.
This was mainly due to the loss from the revaluation of overseas RMB -related assets as a result of the depreciation of RMB against US dollars in the fourth quarter of 2024.
Nio's revenue in the fourth quarter was RMB 19.7 billion, near the lower end of the previous guidance range of RMB 19.68 billion to RMB 20.38 billion.
Revenue for the quarter increased 15.2 percent year-on-year and up 5.5 percent quarter-on-quarter.
Fourth-quarter vehicle sales revenue was RMB 17.48 billion, a year-on-year increase of 13.2 percent and a quarter-on-quarter increase of 4.7 percent.
The increase in vehicle sales was mainly due to an increase in deliveries, but this was partially offset by a decrease in average selling price due to changes in product mix, Nio said.
In the fourth quarter, Nio Inc delivered a record 72,689 vehicles, within the guidance range of 72,000 to 75,000 vehicles.
This represents a year-on-year increase of 45.25 percent and an increase of 17.52 percent compared to the third quarter.
It had other sales of RMB 2.23 billion yuan in the fourth quarter, an increase of 33.8 percent year-on-year and up 12.7 percent compared to the third quarter.
The increase was mainly due to an increase in sales of parts and after-sales automotive services and the provision of power solutions, as well as an increase in revenue from technology research and development services.
Cost of sales in the fourth quarter was RMB 17.39 billion yuan, an increase of 9.9 percent year-on-year and up 4.4 percent compared to the third quarter.
The increase in cost of sales was primarily attributable to an increase in delivery volume, but was partially offset by a decrease in material costs per vehicle, Nio said.
Gross profit for the fourth quarter was RMB 2.31 billion, an increase of 80.5 percent year-on-year and up 15.0 percent quarter-on-quarter.
Gross margin for the fourth quarter of 2024 was 11.7 percent, compared to 7.5 percent for the fourth quarter of 2023 and 10.7 percent for the third quarter of 2024.
The increase in gross margin compared to the third quarter of 2024 was mainly due to the relatively high profit margins of the increased sales of the provision of technology research and development services and parts, accessories and after-sales vehicle services, Nio said.
Vehicle margin in the fourth quarter of 2024 was 13.1 percent, compared to 11.9 percent in the fourth quarter of 2023 and 13.1 percent in the third quarter of 2024.
The increase in vehicle margin compared to the fourth quarter of 2023 was mainly due to a decrease in unit material costs.
R&D expenses for the fourth quarter of 2024 were RMB 3.64 billion, a year-on-year decrease of 8.5 percent and an increase of 9.6 percent compared to the third quarter.
Excluding share-based compensation expenses, non-GAAP R&D expenses were RMB 3.29 billion, a year-on-year decrease of 9.0 percent and an increase of 13.4 percent compared to the third quarter.
The decrease in R&D expenses compared to the fourth quarter of 2023 was primarily due to a decrease in personnel costs for R&D functions and a decrease in design and development costs as a result of the different stages of development of new products and technologies.
The increase in R&D expenses compared to the third quarter was primarily due to an increase in design and development costs for new products and technologies, partially offset by a decrease in personnel costs for R&D functions.
SG&A expenses for the fourth quarter of 2024 were a record RMB 4.88 billion, an increase of 22.8 percent year-on-year and up 18.7 percent quarter-on-quarter.
Non-GAAP SG&A, which excludes share-based compensation expenses, was RMB 4.75 billion, an increase of 25.7 percent year-on-year and up 21.8 percent quarter-on-quarter.
The increase in SG&A was primarily due to an increase in sales and marketing activities for new brands and products, as well as an increase in personnel costs related to the expansion of the company's sales and service network.
As of December 31, 2024, Nio had cash and cash equivalents, restricted cash, short-term investment and long-term time deposits totaling RMB 41.9 billion.
Notably, Nio said in its financial report that its current liabilities exceeded current assets as of December 31, 2024, but that it had sufficient funds to support its operations in the next 12 months.
Nio wrote:
We have been incurring loss since inception. We incurred operating cash outflow for the year ended December 31, 2024 and our current liabilities exceeded current assets as of December 31, 2024.
Based on our going concern and liquidity assessment, which considers our business plan including revenue growth, working capital management and the ability to raise funds from banks under available credit quotas when needed, we believe that our financial resources, including our available cash and cash equivalents, restricted cash and short-term investments, cash generated from operating activities and funds from available credit quotas will be sufficient to support our continuous operations in the ordinary course of business for the next twelve months.
Nio guided that first-quarter deliveries will be between 41,000 and 43,000 vehicles, representing year-on-year growth of about 36.4 percent to 43.1 percent.
It guided that fourth-quarter revenue will be between RMB 12.37 billion and RMB 12.86 billion, representing year-on-year growth of about 24.8 percent to 29.8 percent.
The guidance implies that Nio now expects to deliver 13,945 to 15,945 vehicles in March, considering that it delivered 13,863 and 13,192 vehicles in January and February, respectively.
Related posts on CnEVPost
