NIO, Inc. Q1 FY2025 earnings call

• Deliveries: In Q1, 42,094 smart EVs delivered, up 4.1% y/y; Q2 deliveries expected 147,000-160,000 (25.5%-30.7% y/y growth).
• Product launches: New ES6, EC6, ET5, ET5P launched in late May, with deliveries starting soon. ET9 deliveries in China surpassed BMW 7 Series and Audi A8L in first four months. Firefly started product delivery in late April.
• Tech innovation: NS9031 chip deployed in new models; full domain vehicle OS SkyOS and intelligent chassis system equipped. NWM smart driving version rolled out.
• Service network: 184 NIO houses, 461 NIO spaces, 391 service centers, 66 delivery centers; over 3,408 pulse workstations globally, over 75,000,000 swaps provided.
• International expansion: Partnered with over 10 local partners in over 15 markets; Firefly to roll out in various markets in Q3.

Total revenues reached 12,000,000,000 RMB, up 21.5% year over year but down 38.9% quarter over quarter. Vehicle sales were 9,900,000,000 RMB, up 18.6% year over year and down 43.1% quarter over quarter. Other sales were 2,100,000,000 RMB, grew by 37.2% year over year and decreased 5.9% quarter over quarter. Vehicle margin was 10.2% compared with 9.2% in the previous year and 13.1% last quarter. Overall gross margin was 7.6% compared with 4.9% in Q1 last year and 11.7% last quarter.

• Q2 deliveries expected 147,000-160,000, representing 25.5%-30.7% y/y growth.
• Vehicle gross margin for NIO brand expected to improve to ~15% in Q2.
• Target to achieve breakeven in Q4 with improved sales volume, margin, and cost control.

• Forward-looking statements involve inherent risks and uncertainties; actual results may differ from projections.
• Market competition risks affecting sales volume and margin.
• Supply chain and operational uncertainties impacting production and delivery.

Q: Tina Hou asked about production capacity for 4Q volume and working capital cash conversion cycle.

A: William Li said current production supports Q4 targets, third factory to start ops in Sept, working capital inventory level to be 1/3-1/2 of monthly sales, account payable duration consistent at ~90 days with varying terms per supplier.