EV startup NIO to terminate plan for Shanghai manufacturing plant

Shanghai (Gasgoo)- China-based EV startups NIO announced its unaudited financial results for 2018, saying it posts an annual operating loss of RMB9.5956 billion, 93.7% more than that of a year ago. Meanwhile, its full-year revenues totaled RMB4.9512 billion and gross margin was negative 5.2% for 2018.

Of that, vehicle sales were RMB4.8525 billion for the full year 2018, which accounted for 98.0% of yearly revenues. Vehicle margin was negative 1.6% for the full year.

Net loss was RMB9.639 billion for 2018, showing an increase of 92.0% from the previous year.

Financial highlights for the fourth quarter of 2018 include:

• Total revenues were RMB3.4356 billion in the fourth quarter, representing an increase of 133.8% from the third quarter.

• Gross margin was positive 0.4%, compared with negative 7.9% in the third quarter.

• Vehicle sales were RMB3.3812 billion in the fourth quarter, representing a surge of 137.0% from the third quarter.

• Vehicle margin was positive 3.7%, compared with negative 4.3% in the third quarter.

• Loss from operations was RMB3.4469 billion in the fourth quarter, representing a growth of 22.7% from a quarter earlier and a 106.4% sharp increase from the same period a year ago.

The ES8 production output totaled 8,069 units in the fourth quarter, leaping 91.8% compared with 4,206 units produced in the previous quarter. The ES8 full-year production reached 12,775 units.

Deliveries of the ES8 amounted to 7,980 units in the fourth quarter, skyrocketing 144.2% over the third quarter. Besides, the ES8 deliveries totaled 11,348 units for the full year of 2018.

Speaking of the Shanghai manufacturing plan, NIO gave the update as the below statement in the March 5th’s financial report:

“In 2017, NIO signed framework agreements and memorandums with the government and related entities in Jia Ding, Shanghai, to build a manufacturing plant for NIO. Recently, the Company has agreed in principle with these contractual counterparties to terminate the plan for this manufacturing plant, pending signing of definitive termination agreement. This new initiative allows NIO to focus on the joint manufacturing model in the long term. The Company believes that the existing NIO/JAC plant in Hefei will give it capacity and flexibility to support its market penetration and growth plans for the next two to three years.”