On March 1, 2023, NIO announced its financial report for Q4 2022 and the full year of 2022, which we summarized below.
Increased Losses, but Higher Sales
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In Q4, NIO achieved a revenue of CNY 16.064 billion, which is a YoY increase of 62.2% and a QoQ increase of 23.5%. The number of vehicles delivered in the quarter was 40,052, which is a YoY growth of 60.0% and a QoQ increase of 26.7%.
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The revenue for the full year of 2022 was CNY 45.5066 billion, which is a YoY increase of 67.7%. The number of vehicles delivered in the year was 122,486, which is a YoY increase of 34.0%.
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The total gross profit for Q4 was CNY 622 million, which is a YoY decrease of 63.4% and a QoQ decrease of 64.2%.
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The total gross profit for the full year was CNY 5.144 billion, which is a YoY decrease of 24.6%.
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The gross profit margin for Q4 was 3.9%, while in Q4 2021 it was 17.2% and in Q3 2022 it was 13.3%.
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The gross profit margin for the full year was 10.4%, which was 18.9% in 2021.
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The sales cost for Q4 was CNY 15.4418 billion, which is a YoY increase of 88.3% and a QoQ increase of 37.1%. NIO explained that the increase in sales cost was mainly due to the increase in the number of vehicles delivered and the replacement of ES8, ES6, and EC6.
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The sales cost for the full year was CNY 44.1246 billion, which is a YoY increase of 50.5%.
R&D and Other Data
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The R&D spending for Q4 reached CNY 3.9806 billion, which is a YoY increase of 117.7% and a QoQ increase of 35.2%.
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The R&D spending for the full year was CNY 10.8363 billion, which is a YoY increase of 136.0%.
Cash Data- As of December 31, 2022, the company’s cash reserves reached RMB 45.5 billion, a decrease from RMB 51.4 billion in the previous quarter;
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The net loss in Q4 was RMB 5.7861 billion, an increase of 169.9% YoY and 40.8% QoQ;
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The net loss for the full year was RMB 14.4371 billion, compared to RMB 4.0169 billion in 2021;
2023 Q1 Performance Outlook
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NIO expects to achieve a delivery volume of between 31,000 and 33,000 vehicles in the first quarter of 2023, a year-on-year increase of about 20.3% to 28.1%;
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The estimated total revenue for Q1 2023 is expected to be between RMB 10.926 billion and RMB 11.543 billion, a year-on-year increase of about 10.2% to 16.5%.
Conclusion
Overall, NIO’s delivery volume is steadily increasing, but the gross profit per vehicle is shrinking, and losses are also expanding. One of the main reasons for this is the advancement of battery swap stations, the transition of new and old models, and many supply chain investments.
NIO invested RMB 10.8 billion in R&D last year, and the effects of this investment will be shown on new models and the brand as a whole. Currently, NIO has a cash reserve of RMB 45.5 billion, giving it more flexibility.
With steady delivery volume and cash reserves, NIO is prepared to welcome revenue of hundreds of billions. However, the competition in 2023 will be even more fierce, with the 866 model replacement expected to be completed this year, and the business of the other two sub-brands progressing rapidly. This year is critical for NIO.
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.