NIO released its Q4 2020 financial report, with an overall gross margin of 17.2% and a cash reserve of RMB 42.5 billion.

NIO released its Q4 2020 financial report with an overall gross margin and vehicle gross margin of 17.2%, both hitting a new high. The net loss was 1.388 billion yuan, a decrease of 51.5% YoY.

Delivery:

In Q4, NIO delivered 17,353 vehicles, including 4,873 ES8s, 7,574 ES6s, and 4,906 EC6s, exceeding the expected range of 16,500-17,000 vehicles and a YoY increase of 111%, or 42.2% higher than the prior quarter.
For the first three quarters of 2020, the deliveries were as follows:

• Q3 2020: 12,206 vehicles
• Q2 2020: 10,331 vehicles
• Q1 2020: 3,838 vehicles

The total deliveries for 2020 reached 43,728, a YoY increase of 112.6%. In January 2021, the delivery volume hit a new high of 7,225 vehicles. In February 2021, NIO delivered 5,578 vehicles, including 1,327 ES8s, 2,216 ES6s, and 2,035 EC6s. As of February 28, 2021, NIO’s cumulative deliveries reached 88,444 vehicles.

Li Bin stated that the delivery volume for Q1 2021 is expected to be between 20,000 and 20,500, with an estimated delivery volume of 7,197-7,697 vehicles in March. NIO has a chance to achieve its 100,000th vehicle delivery in April.

Finance:

• NIO’s automotive sales revenue in Q4 2020 was 6.174 billion yuan, an increase of 44.7% QoQ and 130.0% YoY (total revenue was 6.6411 billion yuan, an increase of 46.7% QoQ and 133.2% YoY).
• NIO’s gross margin and vehicle gross margin for Q4 2020 were both 17.2%, compared to 12.9% and 14.5% respectively, in Q3 2020.
• NIO’s net loss in Q4 2020 was 1.3886 billion yuan, a decrease of 51.5% YoY and an increase of 32.6% QoQ.

Other data:

• NIO estimates its total revenue for Q1 2021 to be between 7.3823 billion and 7.5572 billion yuan, a QoQ increase of 11.2%-13.8%.
• NIO’s R&D expenses in Q4 2020 were 829.4 million yuan, a decrease of 19.2% YoY and an increase of 40.4% QoQ.
• NIO’s sales and administrative expenses in Q4 2020 were 1.2068 billion yuan, a decrease of 21.9% YoY and an increase of 28.3% QoQ.
• NIO’s cash reserve reached 42.5 billion yuan.### Annual Comparison:

1. Deliveries
   The total deliveries of ES8, ES6, and EC6 in 2020 were 43,728, compared to 20,565 in 2019 and 11,348 in 2018.

2. Revenue
   The revenue from car sales in 2020 was CNY 15.1525 billion, a year-on-year increase of 106.1%. The total revenue for the year was CNY 16.2579 billion, with a net loss of CNY 5.304 billion, a decrease of 53% year-on-year.

3. Gross Profit
   The gross profit margin for the full year 2020 was 11.5%, with a gross profit margin per vehicle of 12.7%. In 2019, the gross profit margin for the full year was -15.3% and the gross profit margin per vehicle was -9.9%.

4. R&D Investment
   In 2020, R&D investment was CNY 2.4878 billion, a decrease of 43.8% compared to 2019.

5. Other Data
   The total sales and management expenses for the full year of 2020 were CNY 3.9223 billion, a decrease of 27.9% compared to last year.

6. Sales Cost
   The total sales cost for the full year of 2020 was CNY 14.385 billion, a decrease of 59.4% year-on-year.

Historical Review:

🔗 NIO published its Q3 financial report: comprehensive gross profit margin reached 12.9%, cash reserve was CNY 22.2 billion

🔗 NIO Q2 Financial Report Conference: Increasing Production Capacity, Selling Points, and Launching BaaS

🔗 After being “bankrupted” dozens of times, NIO’s sales increased instead of decreasing under the epidemic situation!

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.