On December 5th, NIO. NYSE/9866. HK disclosed its financial report for the third quarter of 2023.
In the third quarter, stimulated by price reductions and promotions, NIO delivered a total of 55432 new cars, reaching a historic high. Thanks to sales growth, NIO achieved a revenue of 19.067 billion yuan in Q3, a year-on-year increase of 46.6%.
NIO's Q3 net loss was 4.557 billion yuan, slightly expanding compared to the same period last year, but significantly narrowing compared to the loss of 6.056 billion yuan in the second quarter of this year.
Meanwhile, although the price reduction may lead to a decrease in bicycle profits, as the scale grows, NIO's gross profit margin gradually emerges from the trough.
NIO's gross profit margin for the third quarter of the year returned to double digits, reaching 11.0%. The company's gross profit margin was 8.0%, a significant increase from the 1.5% in Q1 and 1% in Q2 of this year.
In addition, NIO remains one of the domestic car companies with the highest R&D investment, with a Q3 R&D investment of 3.04 billion yuan, exceeding 3 billion yuan for four consecutive quarters.
As of September 30th, NIO's cash reserves amounted to 45.2 billion yuan, an increase of 13.7 billion yuan from the previous quarter, indicating an improvement in its financial reserves.
In the first three quarters of this year, NIO achieved a cumulative revenue of 38.513 billion yuan and a net loss of 15.313 billion yuan. Since 2018, NIO's cumulative loss has exceeded 80 billion yuan.
The recovery of various financial data indicators of NIO Q3 is strongly related to the company's price adjustment.
In mid June, NIO's entire lineup saw a price reduction of 30000 yuan, driving NIO's delivery volume to rebound in the third quarter.
In the third quarter, NIO delivered a total of 55432 new cars. This is the first time NIO's quarterly sales have exceeded 50000 units.
However, based on the trend in recent months, the price reduction of NIO has limited stimulating effect on sales. 7. In August, NIO's monthly delivery volume was around 20000 units, but from September to November, NIO's monthly delivery volume was around 15000 to 16000 units.
In the first November of this year, NIO delivered a total of approximately 142000 new cars, although it has exceeded the record of 122500 units for the entire year last year. However, considering that NIO has already sold 8 models this year, covering the main segmented markets of high-end brand mid size and mid size sedans, as well as mid size and mid size SUVs. The products have also switched to second-generation platforms, coupled with the stimulation of price reductions across the entire range, NIO's market performance has not met expectations.
However, NIO has also had good news recently.
On December 4th, NIO Automotive Technology (Anhui) Co., Ltd. appeared in the "Vehicle Production Enterprise Credit Information Management System" of the Ministry of Industry and Information Technology, with its production address displayed as No. 299 Baita Road, Hefei Economic and Technological Development Zone, Anhui Province (the location of NIO's second advanced manufacturing base).
This means that NIO, which has been producing cars for ten years, has finally obtained the qualification for independent car manufacturing.
On December 5th, NIO announced that it will acquire production equipment and assets from the first and second advanced manufacturing bases in Jianghuai, with a total price of approximately RMB 3.16 billion excluding taxes.
This is consistent with the announcement of Jianghuai Automobile earlier that day.
According to the announcement from Jianghuai Automobile, NIO will acquire inventory, fixed assets, and ongoing construction from Jianghuai Passenger Car Company's third factory (NIO First Advanced Manufacturing Base), as well as the structures and equipment from the passenger car company's Xinqiao factory (NIO Second Advanced Manufacturing Base).
Hefei Hengchuang is the transferee of the buildings, ongoing factories, and land use rights of the third factory of Jianghuai Passenger Vehicle Company. According to Qixinbao information, the shareholders of Hefei Hengchuang are Hefei Haiheng Holdings Group and Hefei Industrial Investment Holdings (Group) Co., Ltd., which are 100% owned by the State owned Assets Supervision and Administration Commission of Hefei Economic Development Zone and the State owned Assets Supervision and Administration Commission of Hefei City, respectively.
To some extent, NIO's acquisition of factories from Jianghuai has also received support from the local government.