Startup NIO’s Q2 revenue totals US$219.7 million

Shanghai (Gasgoo)- NIO's second-quarter (Q2) revenue totaled RMB1,508.6 million (US$219.7 million), showing a decline of 7.5% from the previous quarter, according to the startup's latest financial report.

Of that, sales from automobile business were RMB1,414.5 million (US$206.1 million), down by 7.9% over the first quarter (Q1).

The startup said its gross margin for the second quarter was negative 33.4%, compared with negative 13.4% for the Jan.-Mar. period.

Excluding accrued recall costs, the Q2 gross margin was negative 10.9%.

Meanwhile, the Q2 automobile margin was negative 24.1%, versus negative 7.2% for the first quarter.

The startup saw the Q2 net loss attributable to its ordinary shareholders jump 24.9% from the first quarter to RMB3,313.7 million (US$482.7 million). However, compared to the year-ago period, the number represented a remarkable decrease of 45.8%.

(Photo source: NIO)

Delivery performance is another highlight for the annoucement. In the second quarter, NIO delivered a total of 3,553 vehicles , versus 3,989 vehicles handed over during the first three months, the high-profile Chinese EV startup said.

Among vehicles sold from April to June, 3,140 units and 413 units came from the ES8 and the ES6 respectively.

(Photo source: NIO)

Monthly deliveries marvelously grew to 1,943 units in August, which comprised 146 ES8s and 1,797 ES6s, from 837 units in July. The company stated the July performance was impacted by its voluntary battery recall for 4,803 ES8s.

“In response to the overall tempered market conditions, we are also working hard to maximize returns on our resources and have implemented comprehensive efficiency and cost control measures across the organization. These measures aim to further improve efficiency and streamline operations within our sales and service network and R&D activities”, said William Bin Li, NIO's founder, chairman and chief executive officer.

“We target to reduce our global headcount to be around 7,800 by the end of the third quarter from over 9,900 in January 2019, and aim to further pursue a leaner operation through additional restructuring and spinning off some non-core businesses by year end,” Mr. Li added.

Regarding the outlook for the third quarter, NIO expects its vehicle deliveries to reach between 4,200 and 4,400 units, an increase of roughly 18.2% and 23.8% from a quarter earlier.

Additionally, total revenues for the Jul.-Sept. period is expected to be between RMB1,593 million (US$232.0 million) and RMB1,663million (US$242.2 million), climbing around 5.6% to 10.3% over the second quarter.