Financial Data and Key Metrics - Total revenue for Q2 2024 reached RMB17.4 billion, up 98.9% YoY and 76.1% QoQ [14] - Vehicle sales revenue was RMB15.7 billion, increasing 118.2% YoY and 87.1% QoQ, driven by higher deliveries [15] - Vehicle margin improved to 12.2% in Q2, up from 6.2% in Q2 2023 and 9.2% in Q1 2024, due to cost optimization and lower material costs [17] - Gross margin improved to 9.7%, compared to 1% in Q2 2023 and 4.9% in Q1 2024 [17] - Net loss decreased to RMB5 billion, down 16.7% YoY and 2.7% QoQ [18] Business Line Performance - NIO delivered 57,373 units in Q2, a 143.9% YoY increase, with monthly deliveries exceeding 20,000 units for four consecutive months [6] - The company expects Q3 deliveries to be between 61,000 and 63,000 units [7] - NIO's market share in China for BEVs priced above RMB300,000 exceeded 40% [6] - ONVO, the mass-market brand, will launch its first model, L60, in September 2024, with deliveries starting in late September [9] Market Performance - NIO has expanded its international presence, with the UAE website going live in August 2024 and product launches planned for Q4 2024 [11] - The company aims to make its charging network available in every county in mainland China by the first half of 2025 and expand the swapping network to over 2,300 counties by the end of 2025 [10] Strategic Direction and Industry Competition - NIO introduced SkyOS, a full-domain operating system, and Banyan 3.0, a smart system, enhancing its technological capabilities [7] - The company is focusing on cost optimization, supply chain efficiency, and expanding its user community to drive growth [6][7] - NIO plans to leverage its multi-brand strategy, including NIO, ONVO, and Firefly, to cover a wide price range from RMB140,000 to RMB800,000 [54] Management Commentary on Operating Environment and Future Outlook - Management highlighted the importance of expanding the charging and swapping network to support sales growth and market reach [10] - The company is confident in its ability to maintain a strong market position in the premium EV segment, despite intense competition [52] - NIO aims to achieve a monthly delivery volume of 40,000 units for the NIO brand and a vehicle margin of 25% in the long term [27] Other Important Information - NIO has over 2,561 power swap stations globally and has completed over 52 million swaps [10] - The company has installed over 23,000 power chargers and destination chargers [10] - NIO's R&D expenses were RMB3.2 billion in Q2, down 3.8% YoY but up 12.4% QoQ due to increased design and development costs [17] Q&A Session Summary Question: ONVO L60 Pre-Orders and Supply Chain Preparation - The company is confident in the competitiveness of the L60 model, with pre-orders surpassing expectations [22] - NIO plans to achieve a supply capacity of 10,000 units by the end of 2024 and 20,000 units per month in 2025 [23] Question: NIO Brand Vehicle Sales and Margin Upside - NIO aims to improve vehicle margins to around 15% by the end of 2024, driven by cost optimization and product mix improvements [25] - The long-term target for the NIO brand is a monthly delivery volume of 40,000 units and a vehicle margin of 25% [27] Question: ONVO L60 Volume Target and SG&A Expenses - Most L60 deliveries in 2024 will occur in Q4, with monthly deliveries expected to reach 10,000 units by December [31] - SG&A expenses are expected to increase due to the launch of L60, but the company will optimize expenses relative to sales revenue [32] Question: ONVO L60 Gross Margin and Capacity Expansion - The L60 model is expected to achieve a 15% gross margin at scale, with production capacity supported by two factories and a third factory planned for Q3 2025 [36][37] Question: NOP Progress and Market Competition - NIO's NOP Plus is used by over 300,000 users, with cumulative mileage exceeding 1.1 billion kilometers [48] - The company is confident in its diversified product portfolio and technological advantages to counter market competition [52] Question: ET9 Launch and Overseas Expansion - The ET9 launch is on schedule for Q1 2025, with the model featuring advanced technologies like steer-by-wire and fully active suspension [59] - NIO's international expansion will focus on existing European markets and the UAE, with plans to introduce ONVO and Firefly products globally [60] Question: China EV Market Growth and Firefly Pipeline - The company expects the penetration rate of new energy vehicles in China to surpass 80% in the next 2-3 years [65] - Firefly will launch one or two models in 2025, with product preparation progressing smoothly [66] Question: SkyOS and Other Sales Gross Margin - SkyOS is a comprehensive operating system that enhances vehicle safety, stability, and R&D efficiency [70] - The company expects the profitability of other sales, including charging and battery swap services, to improve as the user base grows [72]
NIO(NIO) - 2024 Q2 - Earnings Call Transcript