I had Bing write an Ideal Car 2022 Q4 financial report analysis.

On February 27, 2023, NIO released its unaudited financial report for both Q4 2022 and the entire fiscal year. The report revealed that NIO achieved strong growth in 2022, with improvements in profitability and cash flow.

In Q4 2022, NIO’s revenue reached RMB 17.65 billion ($2.56 billion), up 66.2% YoY and 88.9% QoQ. Automotive sales revenue was RMB 17.27 billion ($2.5 billion), up 66.4% YoY and 90.9% QoQ. NIO delivered 46,319 vehicles, up 31.5% YoY and 74.8% QoQ.

NIO’s gross profit in Q4 2022 was RMB 3.57 billion ($517.1 million), up 49.8% YoY and 201.7% QoQ. Gross margin was 20.2%, up 7.5 percentage points from the previous quarter. Automotive gross margin was 20%, up 8 percentage points from the previous quarter. Net profit was RMB 265 million ($3.85 million), a turnaround from the previous quarter’s loss, but down 10.2% YoY. Non-GAAP net profit was RMB 968 million ($14.03 million), up 41% YoY and a turnaround from the previous quarter’s loss.

Operating cash flow in Q4 2022 was RMB 4.93 billion ($714.1 million), up 28.4% YoY and significantly improved QoQ. Free cash flow was RMB 3.26 billion ($472.3 million), up 101.6% YoY and significantly improved QoQ.

The report also noted that NIO’s full-year revenue was RMB 45.29 billion ($6.57 billion), up 67.7% YoY. Automotive sales revenue was RMB 44.11 billion ($6.39 billion), up 68.8% YoY. NIO delivered 133,246 vehicles, up 47.2% YoY.

Full-year gross profit was RMB 8.79 billion ($1.27 billion), up 52.6% YoY. Gross margin was 19.4%, down 1.9 percentage points from the previous year. Automotive gross margin was 19.1%, down 1.5 percentage points from the previous year. Full-year net loss was RMB 1.14 billion ($16.5 million), a 75% decrease from the previous year. Non-GAAP net loss was RMB 60 million ($8.7 million).

In terms of cash flow, the net cash flow generated by the operating activities of the Ideal Car Company for the full year of 2022 is negative 760 million yuan (110 million US dollars), up 59.5% year-on-year; the net free cash flow is negative 3.16 billion yuan (460 million US dollars), up 24.1% year-on-year.

It is worth mentioning that in the fourth quarter of 2022, Ideal Car Company has started delivering the world’s first production model equipped with lidar, and Ideal Car is also planning to launch a second model with lidar in 2023. In addition, the company plans to launch more intelligent new products, including volume production autonomous driving models and smart battery swap technology, to meet the growing consumer demand.

Overall, Ideal Car Company has achieved strong performance growth in 2022, demonstrating good development momentum and innovation capability.

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.