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Total Revenues: RMB19.7 billion, up 15.2% year over year and 5.5% quarter over quarter.
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Vehicle Sales: RMB17.5 billion, increased 13.2% year over year and 4.7% quarter over quarter.
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Other Sales: RMB2.2 billion, grew by 33.8% year over year and 12.7% quarter over quarter.
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Vehicle Margin: 13.1%, compared to 11.9% in Q4 last year.
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Overall Gross Margin: 11.7%, up from 7.5% in Q4 last year.
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R&D Expenses: RMB3.6 billion, decreased 8.5% year over year.
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SG&A Expenses: RMB4.9 billion, up 22.8% year over year.
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Loss from Operations: RMB6 billion, down 8.9% year over year.
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Net Loss: RMB7.1 billion, increased 32.5% year over year.
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Cash and Cash Equivalents: RMB41.9 billion at the end of the quarter.
Release Date: March 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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NIO Inc (NYSE:NIO) set a new quarterly record with 72,689 smart EV deliveries in Q4 2024, marking a 38.7% increase year over year.
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The NIO brand secured a 40% market share in China’s BEV segment priced above RMB300,000, leading the premium segment.
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NIO’s vehicle margin improved to 14.9% in Q4, with overall vehicle margin reaching 13.1%, driven by supply chain optimization and cost control.
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The company launched the NIO ET9, a flagship smart executive sedan, which sold out its first edition of 999 units within hours.
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NIO’s global expansion is supported by 183 NIO Houses, 462 NIO Spaces, and 3,245 post-op stations worldwide, enhancing its competitive edge in the BEV market.
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NIO Inc (NYSE:NIO) reported a net loss of RMB7.1 billion in Q4 2024, an increase of 32.5% year over year and 40.6% quarter over quarter.
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The ONVO brand’s sales performance did not meet expectations, with brand awareness and sales network maturity cited as challenges.
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Q1 2025 vehicle margin is expected to be under pressure due to seasonality and product transitions, impacting profitability.
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Operating expenses increased, with SG&A expenses up 22.8% year over year, driven by sales and marketing for new brands and products.
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Interest and investment loss amounted to RMB0.2 billion, primarily due to fair value changes in equity investments.
Q: What cost reduction efforts is NIO implementing, and when will these efforts reflect in financial results? A: Bin Li, CEO, explained that NIO has initiated cost reduction efforts since last year, focusing on supply chain and R&D. These efforts have already improved vehicle margins in Q4 2024. Starting Q1 2025, NIO launched a comprehensive cost reduction initiative involving all employees, which is expected to reflect in financial results from Q2 2025 onwards. The company aims to achieve breakeven by Q4 2025.
Q: How does NIO plan to regain growth momentum for the ONVO brand? A: Bin Li, CEO, acknowledged that ONVO’s sales performance has been below expectations due to low brand awareness and immature sales networks. NIO is increasing brand exposure through advertising and expanding its sales network. The company is also enhancing the maturity of its sales force and improving the availability of Power Swap stations for ONVO users. These efforts are expected to boost ONVO’s sales volume.
Q: What are NIO’s expectations for gross margin and sales volume in 2025? A: Stanley Qu, CFO, stated that Q1 2025 vehicle margins will be under pressure due to seasonality and product transitions. However, NIO aims for a 20% vehicle margin for the NIO brand and 15% for ONVO by year-end. The company plans to double its 2024 sales volume in 2025, driven by new model launches and improvements in the ONVO brand’s performance.
Q: What is NIO’s strategy regarding AI and autonomous driving technologies? A: Bin Li, CEO, highlighted that NIO has integrated AI into its products, such as the NOMI AI companion and smart driving technologies. The company focuses on using AI to enhance product experience and safety. NIO is also testing end-to-end solutions for autonomous driving, with plans to release new features by April 2025.
Q: What are NIO’s long-term financial targets, and how does it plan to achieve them? A: Bin Li, CEO, stated that NIO aims for an annual volume of 2 million units, a 20% gross margin, and a 7-8% net margin by 2030. The company plans to achieve these targets through product diversification, cost optimization, and leveraging its Power Swap network to enhance market reach.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.