Affected by recent market rumors, NIO SW (09866. HK) continues to weaken. As of press time, it fell 6.25% to HKD 31.5.
Note: NIO's trend
In terms of news, NIO's legal department announced on its official WeChat account that the company had noticed the sudden appearance of false information on the internet that "NIO announced bankruptcy", which was subsequently widely spread maliciously and suspected of serious illegal activities.
NIO has reported this to the police and will take other legal measures to hold the illegal personnel responsible for planning, manufacturing, and spreading this rumor accountable.
It is worth noting that the spread of this rumor happened just before NIO was about to announce its mid-term results, which has raised concerns among investors.
Why is NIO rumored to be bankrupt?
The rumors of NIO's bankruptcy may be related to the company's ongoing losses and high investment.
Taking the 2023 financial report as an example, NIO's net profit loss attributable to its parent company reached 21.15 billion yuan, a significant increase of 45% year-on-year. After losing 23.3 billion yuan in 2018, NIO's loss amount has once again returned to over 20 billion yuan. According to statistics, NIO incurred a cumulative loss of 86.63 billion yuan from 2018 to 2023.
Note: Wei's net loss performance since 2018
For high investment, NIO's R&D investment will reach 13.4314 billion yuan in 2023, a year-on-year increase of 23.9%, exceeding 10 billion yuan for two consecutive years. In the past few years, NIO has invested over 43 billion yuan in research and development. Previously, Li Bin had repeatedly stated in public that "NIO's losses mainly come from research and development investment".
In addition to the aforementioned factors, competition among new energy vehicle companies is becoming increasingly fierce at present. For example, in terms of price, with the increasing number of electric vehicle brands and models in the market, price competition has become more intense. In order to attract consumers, some car companies may adopt price reduction strategies, which may compress profit margins.
In addition, NIO announced its August sales on Sunday, delivering 20176 new cars, exceeding 20000 units for four consecutive months; From January to August this year, NIO delivered a total of 128100 new cars, a year-on-year increase of 35.77%.