NIO Q2 2023 Earnings Note
[Rewards] NIO Q2 margins contracted continually, and revamped models began shipping
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KEY Figures:
● Q2 total revenues were US$1,209.7 million, representing a decrease of 14.8% YoY (year-on-year) and a decrease of 17.8% from the first quarter of 2023. Specifically, vehicle sales were US$990.9 million in this quarter.
● Vehicle deliveries were 23,520 in Q2 2023, consisting of 10,492 electric SUVs and 13,028 electric sedans, representing a decrease of 6.1% YoY and a decrease of 24.2% QoQ (quarter-on-quarter).
● Vehicle margin was 6.2% in Q2 2023, compared with 16.7% YoY and 5.1% in the first quarter of 2023.
● Net loss was US$835.1 million this quarter, representing an increase of 119.6% YoY and an increase of 27.8% QoQ. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was US$751 million in Q2 2023.
● For the Q3 FY23 Outlook, deliveries of vehicles are between 55,000 and 57,000, representing an increase of 74% to 80.3% YoY approximately.
● For the Q3 FY23 Outlook, total revenues are between US$2,606 million and US$2,692 million, representing an increase of 45.3% to 50.1% YoY approximately.
KEY Points:
● "Attributed to the product transition based on NT2.0 Platform, coupled with the expansion of our power network and the strengthening of our sales capabilities, we expect a solid growth in vehicle deliveries in H2 2023," said William Bin Li, the CEO of NIO.
● In July 2023, NIO closed the US$738.5 million strategic equity investment from CYVN Entities, demonstrating the company's value and strengthening its balance sheet.
● In June 2023, NIO launched the ET5T, an electric tourer, and started its deliveries the next day. With the volume ramp-up of new models, there might be beneficial changes in the future.
● NIO plans to launch its first self-developed smartphone in September, aiming to improve the appeal of its cars with better software and connectivity.
● The Chinese EV makers as a whole are experiencing pressure on margins, which could delay their break-even years.
More statistics:
The KEY in your hands:
By August 30, 2023, NIO shares had increased more than 9% since the beginning of 2023, falling behind the S&P 500 (.SPX), which was up about 18% during the same period (Source: moomoo APP).
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Disclaimer
Comments above are made available for informational purposes only. Before investing, please consult a licensed professional. *Source of data: https://news.moomoo.com/notice/150149647; NIO's earnings conference call* This presentation is for information and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Before investing, please consult a licensed professional. See this link for more information.
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104408996 :
70698353 :
MightyMango : a 9% increase over the year is nothing to scoff at. the new software and mew model should see a surge over the next quarter
101551696 : There are various objective reasons for the sharp decline in performance in the second quarter. Although it is uncontrollable, it is at the lower limit of the company's expected range, and the company is expected to grow by 70% in the third quarter, which is an opportunity.
Meme_Short_Queen : The Chinese broader market hit buttom now, long term up up, buy Nio buy buy!
Shuseido : EV space is too cramped and highly competitive. It is very challenging for NIO to continue to gain market share and expand outside of China. Management need to find ways to reduce operating cost and increase profit margins.
杰曼 : I hope Tesla can announce new car model, which will bring the company into new heights, it has a huge loyal base customer who has the spending ability, very much similar to Apple.
Nio have to fight hard within the country not only to surpass but outshine other competitors in their largest market, before it can succeed outside China. BYD has slowly achieved that status.
Shahrizal bin MD Saf :
Gong Xi Fuck Cai ❤ : NIO can expand it business to other area like vibrator toys or ky lubricant as nio had already done these R&D for motor vibration and lubricant oil. Don't waste the R&D efforts.
mr_cashcow : Hopefully goes up, thankfully they are at least making some profit from each sale
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