Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter
The EV maker NIO released on Thursday its Q1 2022 Earnings results reporting $1.45b from vehicles sales, a 24.8% increase quarter-over-quarter. The company will now host a conference call with the management team to discuss the results.
Vehicle sales were $1,458.2 million (RMB9,244.0M) in the first quarter of 2022, representing an increase of 24.8% year-over-year and an increase of 0.3% from the fourth quarter of 2021. In terms of Vehicle margin, NIO reported 18.1% in the first quarter of 2022, down from the 21.2% achieved in the Q1 2021 and 20.9% in the Q4 2021.
Total revenues were US$1,563.4 million (RMB9,910.6M) in the first quarter, representing an increase of 24.2% year-over-year and an increase of 0.1% from Q4 2021. Gross profit was $228.2 million (RMB1,446.8M) in the first quarter of 2022, representing a decrease of 6.9% year-over-year and a decrease of 14.9% from the fourth quarter of 2021.
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Gross margin was 14.6% in the first quarter of 2022, compared with 19.5% in the first quarter of 2021 and 17.2% in the fourth quarter of 2021.
Loss from operations was RMB2,188.7 million (US$345.3 million) in the first quarter of 2022, representing an increase of 639.7% from the first quarter of 2021 and a decrease of 10.5% from the fourth quarter of 2021. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB1,715.6 million (US$270.6 million) in the first quarter of 2022, representing an increase of 760.4% from the first quarter of 2021 and a decrease of 16.2% from the fourth quarter of 2021.
NIO’s net loss in the first quarter was $281.2 million (RMB1,782.7M), representing an increase of 295.3% from Q1 2021 and a decrease of 16.8% year-over-year. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB1,309.6 million (US$206.6 million) in the first quarter of 2022, representing an increase of 269.3% from the first quarter of 2021 and a decrease of 25.0% from the fourth quarter of 2021.
Net loss attributable to NIO’s ordinary shareholders was RMB1,825.0 million (US$287.9 million) in the first quarter of 2022, representing a decrease of 62.6% from the first quarter of 2021 and a decrease of 16.3% from the fourth quarter of 2021. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted net loss attributable to NIO’s ordinary shareholders (non-GAAP) was RMB1,285.2 million (US$202.7 million) in the first quarter of 2022, representing an increase of 262.5% from the first quarter of 2021 and a decrease of 25.1% from the fourth quarter of 2021.
Basic and diluted net loss per Ordinary Share/American Depositary Share (ADS) were both RMB1.12 (US$0.18) in the first quarter of 2022, compared with RMB3.14 in the first quarter of 2021 and RMB1.36 in the fourth quarter of 2021. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted basic and diluted net loss per ADS (non-GAAP) were both RMB0.79 (US$0.13), compared with RMB0.23 in the first quarter of 2021 and RMB1.07 in the fourth quarter of 2021.
Cash and cash equivalents, restricted cash and short-term investment were RMB53.3 billion (US$8.4 billion) as of March 31, 2022.
CEO and CFO Comments
“We set new record-high quarterly deliveries of 25,768 vehicles in the first quarter of 2022, and hit the milestone of exceeding 200,000 vehicle deliveries in May within four years since our first delivery,” said William Bin Li, founder, chairman and chief executive officer of NIO. “Despite the volatilities of supply chain and the challenges in vehicle delivery resulting from the recent COVID-19 resurgence, we witnessed robust demand for our complementary products and achieved an all-time high order inflow in May 2022”, William Li said.
“On April 29, 2022, the first batch of tooling trial builds of the ET5 rolled off the production line at the new manufacturing plant at NeoPark in Hefei. We expect to start delivery of the ET5 in September 2022. In addition, we will further enhance our product offering by introducing the ES7, a new mid-to-large five-seater SUV based on NIO Technology 2.0 (NT2.0), in June and expect to start its delivery in late August,” he added.
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“NIO successfully listed on the Main Board of the Singapore Exchange Securities Trading Limited on May 20, 2022, further strengthening our footing in the global capital markets,” added Steven Wei Feng, chief financial officer of NIO. “To quickly recover from the COVID-19 impact and fulfill the growing market demand, we have been working closely with supply chain partners to ramp up the production capacity and accelerate the vehicle delivery since the beginning of June. While making decisive investments in new products, technologies and businesses, we strive to continuously optimize our cost structure, improve operating efficiency and create long-term value for our shareholders.”
On Wednesday, China’s Ministry of Industry and Information Technology officially released another batch of upcoming models to the country which includes NIO ET5. The Shanghai-based company will start the production of two new models this year and both will include a retractable electric tow hook capable of towing up to 1400kg.
According to the information revealed, ET5 joins the SUV ES7 (that will be officially launched on June 15) becoming the first passenger cars in China equipped with an electric tow hook. With the camping boom, NIO worked to launch a portable charger and is now preparing to equip its new models with an electric tow hook. On June 15, it is also expectable to see the same feature announced on the updated versions of NIO ES8, ES6, and EC6.
In a new note released earlier this week, Deutsche Bank analyst Edison Yu disclosed its expectations for the financial results. After the Shanghai opening up last week, the analyst forecasts that the company will deliver 24,000 units in Q2 2022, down 6.9% from the first quarter of 2021.
Earlier this week, NIO surpassed the U.S.-based Lucid Motors in Market cap becoming the third biggest EV maker after Tesla and BYD. On Monday, NIO stock opened higher at $18.99 and immediately saw buy pressure gapping up to a new 6-weeks high of $19.80 resulting in a Market Cap value of $31.482 billion. In parallel, Lucid stock went down to $18.80 per share which, considering the 1.67 billion shares outstanding, results in a market cap value of $31.412 billion.
NIO will hold a conference to officially launch the new SUV model NIO ES7 on June 15, at 20:00 in Shanghai timezone. The company will start receiving reservations on the evening of the conference and the orders will start to be locked in July with the first deliveries expected as soon as the end of August.
Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter
