Executive Summary
In Q1 2024, NIO Inc reported total revenues of RMB 9.9 billion, a decrease of 7.2% year-over-year and a significant decline of 42.1% from the previous quarter, primarily driven by lower vehicle deliveries and decreased average selling prices due to promotional activities. Despite a difficult quarter, NIO continues to enhance its vehicle margin, achieving 9.2% this quarter, up from 5.1% year-over-year, attributed to material cost efficiencies. The company anticipates a rebound in deliveries in Q2, projecting between 54,000 to 56,000 units, presenting an impressive year-over-year growth of approximately 129.6% to 138.1%. Management remains committed to fostering growth through strategic product launches like the new ONVO brand, which targets the family market with the L60 model set to launch in September.
Key Performance Indicators
QoQ: -42.07% | YoY:-7.19%
QoQ: -61.87% | YoY:200.53%
Key Insights
Revenue: RMB 9.9 billion (YoY -7.2%, QoQ -42.1%)
Vehicle Sales: RMB 8.4 billion (85% of total revenue, YoY -9.1%, QoQ -45.7%)
Gross Margin: 4.9% (YoY +3.4%, QoQ -5.6%)
Operating Loss: RMB -5.4 billion (YoY +5.5%, QoQ -18.6%)
Net Loss: RMB -5.2 billion (YoY +9.4%, QoQ -3.4%)
Cash and Cash Equivalents: RMB 45.3 billion
Vehicle Margin: 9.2% (YoY +4.1%, QoQ -2.7%)...
Financial Highlights
Revenue: RMB 9.9 billion (YoY -7.2%, QoQ -42.1%)
Vehicle Sales: RMB 8.4 billion (85% of total revenue, YoY -9.1%, QoQ -45.7%)
Gross Margin: 4.9% (YoY +3.4%, QoQ -5.6%)
Operating Loss: RMB -5.4 billion (YoY +5.5%, QoQ -18.6%)
Net Loss: RMB -5.2 billion (YoY +9.4%, QoQ -3.4%)
Cash and Cash Equivalents: RMB 45.3 billion
Vehicle Margin: 9.2% (YoY +4.1%, QoQ -2.7%)
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
9.91B |
-7.19% |
-42.07% |
| Gross Profit |
487.73M |
200.53% |
-61.87% |
| Operating Income |
-5.39B |
-5.52% |
18.58% |
| Net Income |
-5.26B |
-10.94% |
5.99% |
| EPS |
-2.57 |
10.45% |
19.18% |
Key Financial Ratios
operatingProfitMargin
-54.4%
Management Commentary
Management Insights:
1. Recovery in Deliveries: William Li indicated, 'NIO's deliveries started to pick up month by month' with expected delivery increases in Q2.
2. Product Launch and Strategy: Management highlighted the launch of new models and a flexible sales policy to enhance market share.
3. Vehicle Margin: 'We expect the vehicle margin to return to double digits in Q2' was emphasized, reflecting management's confidence in future margins driven by improved cost efficiencies.
4. Investment in NIO Power: Significant investments highlight the importance of the power swap network, which received RMB 1.5 billion for further technological advancements.
William Li: 'In Q1, NIO delivered 30,053 premium smart EVs... Our market share in the premium BEV segment continued to grow.'
— William Li
Steven Feng: 'We expect the vehicle margin will return to double digits in Q2.'
— Steven Feng
Forward Guidance
Looking ahead, NIO expects to recover its sales momentum, with management forecasting vehicle deliveries to surge in Q2 to between 54,000 and 56,000 units. Management remains optimistic about achieving vehicle margins above 10% in the coming quarters. The strategic focus on expanding the ONVO brand to capture the mid-market segment is pivotal, along with efficient cost management strategies to navigate inflationary pressures on material costs. Investors are advised to monitor the implementation of these strategies closely, as well as any developments regarding external financing and partnerships.