NIO Inc. Reports Unaudited Fourth Quarter and Full Year 2022 Financial Results

Quarterly Total Revenues reached RMB16,063.5 million (US$2,329.0 million)ⁱ
Record-high Quarterly Vehicle Deliveries were 40,052 units
Full Year Total Revenues reached RMB49,268.6 million (US$7,143.3 million)
Full Year Vehicle Deliveries were 122,486 units

SHANGHAI, China, March 01, 2023 (GLOBE NEWSWIRE) -- NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) (“NIO” or the “Company”), a pioneer and a leading company in the premium smart electric vehicle market, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2022.

Operating Highlights for the Fourth Quarter and Full Year of 2022

• Vehicle deliveries were 40,052 in the fourth quarter of 2022, consisting of 20,824 premium smart electric SUVs and 19,228 premium smart electric sedans, representing an increase of 60.0% from the fourth quarter of 2021 and an increase of 26.7% from the third quarter of 2022.
• Vehicle deliveries were 122,486 in 2022, representing an increase of 34.0% from 2021.

Financial Highlights for the Fourth Quarter of 2022

• Vehicle sales were RMB14,759.0 million (US$2,139.9 million) in the fourth quarter of 2022, representing an increase of 60.2% from the fourth quarter of 2021 and an increase of 23.7% from the third quarter of 2022.
• Vehicle marginⁱⁱ was 6.8% in the fourth quarter of 2022, compared with 20.9% in the fourth quarter of 2021 and 16.4% in the third quarter of 2022. The vehicle margin in the fourth quarter of 2022 was negatively impacted by 6.7 percentage points due to inventory provisions, accelerated depreciation on production facilities, and losses on purchase commitments for the existing generation of ES8, ES6 and EC6.
• Total revenues were RMB16,063.5 million (US$2,329.0 million) in the fourth quarter of 2022, representing an increase of 62.2% from the fourth quarter of 2021 and an increase of 23.5% from the third quarter of 2022.
• Gross profit was RMB621.8 million (US$90.1 million) in the fourth quarter of 2022, representing a decrease of 63.4% from the fourth quarter of 2021 and a decrease of 64.2% from the third quarter of 2022.
• Gross margin was 3.9% in the fourth quarter of 2022, compared with 17.2% in the fourth quarter of 2021 and 13.3% in the third quarter of 2022.
• Loss from operations was RMB6,736.1 million (US$976.7 million) in the fourth quarter of 2022, representing an increase of 175.5% from the fourth quarter of 2021 and an increase of 74.0% from the third quarter of 2022. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB6,015.7 million (US$872.2million) in the fourth quarter of 2022, representing an increase of 193.7% from the fourth quarter of 2021 and an increase of 84.6% from the third quarter of 2022.
• Net loss was RMB5,786.1 million (US$838.9 million) in the fourth quarter of 2022, representing an increase of 169.9% from the fourth quarter of 2021 and an increase of 40.8% from the third quarter of 2022. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB5,065.6 million (US$734.4 million) in the fourth quarter of 2022, representing an increase of 190.0% from the fourth quarter of 2021 and an increase of 44.8% from the third quarter of 2022.
• Net loss attributable to NIO’s ordinary shareholders was RMB5,847.1 million (US$847.7 million) in the fourth quarter of 2022, representing an increase of 168.3% from the fourth quarter of 2021 and an increase of 41.2% from the third quarter of 2022. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted net loss attributable to NIO’s ordinary shareholders (non-GAAP) was RMB5,054.0 million (US$732.8 million) in the fourth quarter of 2022, representing an increase of 194.6% from the fourth quarter of 2021 and an increase of 46.1% from the third quarter of 2022.
• Basic and diluted net loss per ordinary share/American Depositary Share (ADS)ⁱⁱⁱ were both RMB3.55 (US$0.51) in the fourth quarter of 2022, compared with RMB1.36 in the fourth quarter of 2021 and RMB2.53 in the third quarter of 2022. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted basic and diluted net loss per ADS (non-GAAP) were both RMB3.07 (US$0.44), compared with RMB1.07 in the fourth quarter of 2021 and RMB2.11 in the third quarter of 2022.
• Cash and cash equivalents, restricted cash, short-term investments and long-term time deposits were RMB45.5 billion (US$6.6 billion) as of December 31, 2022.

Financial Highlights for the Full Year of 2022

• Vehicle sales were RMB45,506.6 million (US$6,597.8 million) for the full year of 2022, representing an increase of 37.2% from the previous year.
• Vehicle margin was 13.7% for the full year of 2022, compared with 20.1% for the previous year.
• Total revenues were RMB49,268.6 million (US$7,143.3 million) for the full year of 2022, representing an increase of 36.3% from the previous year.
• Gross profit was RMB5,144.0 million (US$745.8 million) for the full year of 2022, representing a decrease of 24.6% from the previous year.
• Gross margin was 10.4% for the full year of 2022, compared with 18.9% for the previous year.
• Loss from operations was RMB15,640.7 million (US$2,267.7 million) for the full year of 2022, representing an increase of 247.9% from the previous year. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB13,344.8 million (US$1,934.8 million) in 2022, representing an increase of 282.8% from the previous year.
• Net loss was RMB14,437.1 million (US$2,093.2 million) for the full year of 2022, representing an increase of 259.4% from the previous year. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB12,141.2 million (US$1,760.3 million) for the full year of 2022, representing an increase of 303.8% from the previous year.
• Net loss attributable to NIO’s ordinary shareholders was RMB14,559.4 million (US$2,110.9 million) for the full year of 2022, representing an increase of 37.7% from the previous year. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted net loss attributable to NIO’s ordinary shareholders (non-GAAP) was RMB11,984.2 million (US$1,737.5 million).
• Basic and diluted net loss per ADS were both RMB8.89 (US$1.29) for the full year of 2022. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted basic and diluted net loss per ADS (non-GAAP) were both RMB7.32 (US$1.06). 
  
  

Recent Developments
Deliveries in January and February 2023

• NIO delivered 8,506 vehicles in January 2023 and 12,157 vehicles in February 2023. The February deliveries increased by 98.3% year-over-year and consisted of 5,037 premium smart electric SUVs, and 7,120 premium smart electric sedans. As of February 28, 2023, NIO’s cumulative vehicle deliveries reached 310,219 vehicles.

NIO Day 2022

• On December 24, 2022, NIO hosted NIO Day 2022 in Hefei, China. NIO launched the EC7, a smart electric flagship coupe SUV, and the All-New ES8, an all-round smart electric flagship SUV. Both models are derived from NIO Technology 2.0 (NT2.0), bringing user experiences beyond expectations in terms of design, performance, comfort, intelligence, safety, and sustainability.
  
  At NIO Day 2022, NIO introduced the third-generation Power Swap station and the 500kW ultra-fast Power Charger. The third-generation Power Swap station achieves more efficient vehicle-station coordination and can complete up to 408 swaps per day, a 30% increase compared with the second-generation Power Swap station.

Supplemental Information on the Completed Independent Internal Review 
Reference is made to the announcements issued by the Company on June 29, 2022, July 11, 2022 and August 26, 2022 (the “Announcements”) in relation to the publication of a report issued by the short-seller firm Grizzly Research LLC on June 28, 2022 (the “Short Seller Report”).

As previously disclosed in the Announcements, shortly after the publication of the Short Seller Report, an independent committee of the board of directors (the “Independent Committee”), consisting of independent directors of the Company, was formed to oversee an independent internal review regarding the key allegations made in the Short Seller Report (the “Internal Review”). The Internal Review was conducted by the Independent Committee with the assistance of third-party professional advisors, including an international law firm and forensic accounting experts from a well-regarded forensic accounting firm that is not the Company’s auditor.

Based on the results of the Internal Review, the Independent Committee has concluded that the key allegations of the Short Seller Report are not substantiated. In particular, the Internal Review found that the allegations set forth in the Short Seller Report concern matters that had been accurately and adequately disclosed in the Company’s historical annual and periodic reports (e.g., under Item 4. “Information on the Company” and Item 7. “Major Shareholders and Related Party Transactions” of the Company’s annual report on Form 20-F filed with the SEC on April 29, 2022), press releases and prospectus filed with The Stock Exchange of Hong Kong Limited and the Singapore Exchange Securities Trading Limited (e.g., under “Business,” “Financial Information,” and “Relationship with the Controlling Shareholders” sections). Such matters included, for example, the Company’s BaaS model, NIO Users Trust, and investments in NIO China. The Short Seller Report either disregards or misconstrues the information that the Company disclosed in these and other public filings. No evidence was uncovered in the Internal Review suggesting improprieties in the Company’s transactions with the various entities mentioned in the Short Seller Report or any inaccuracies or inadequacies in the Company’s public disclosures regarding the same.

CEO and CFO Comments
“NIO delivered 40,052 vehicles in the fourth quarter of 2022, representing a solid growth of 60% year-over-year and achieving a record-breaking quarterly delivery. NIO capped off 2022 with 122,486 vehicle deliveries, representing a growth of 34% year-over-year. NIO has established itself as the most competitive premium brand in the smart electric vehicle market in China, ranking first in the premium battery electric vehicle market segments priced over RMB400,000 and RMB300,000 with the market share of 75.8% and 54.8% respectively in the fourth quarter of 2022, according to the retail sales data from China Automotive Technology and Research Center," said William Bin Li, founder, chairman and chief executive officer of NIO.

"In 2022, we made positive strides in the research and development of core technologies and competitive products, infrastructure deployment and global market expansion, laying a solid foundation for the Company's long-term growth," added Mr. Li. "In 2023, we plan to deliver five new products based on NIO Technology Platform 2.0, deploy 1,000 additional Power Swap stations to further improve holistic user experience, and continuously strengthen our competitive advantages in key areas of smart electric vehicles."

"2022 was a year of decisive investments and accelerated global market entry for NIO," added Steven Wei Feng, NIO's chief financial officer. "In 2023, we will focus on improving our execution efficiency, and work in an agile and efficient mode to embrace the competition in the global electric vehicle market in the long run."