Electric car maker Nio has widened its loss for 2QFY2022 ended June 30 by 316.4% to RMB2.7 billion ($570 million) compared to the same corresponding period last year.
Basic net loss per ordinary share for 2QFY2022 stood at RMB1.68, compared with RMB0.42 in 2QFY2021.
Total revenue for the period was RMB10.2 billion, a 21% increase from 2QFY2021. Vehicle sales were up 21% y-o-y to RMB9.5 billion, mainly attributed to higher deliveries.
Cost of sales for 2QFY2022 grew 30.2% to RMB8.9 billion, mainly driven by the increase of delivery volume and higher material cost per vehicle in the second quarter of the year.
Gross profit decreased 14.8% y-o-y to RMB1.3 billion, while gross margin stood at 13% compared to 18.6% recorded in 2QFY2021. The decrease of gross margin was due to the decrease of vehicle margin and the reduction in other sales margin.
Cash and cash equivalents, restricted cash and short-term investment stood at RMB54.4 billion as at June 30, 2022.
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Nio chairman William Bin Li says the second half of 2022 is a critical period for the company to scale up the production and delivery of multiple new products. “The ES7, our first mid-large five-seater smart electric SUV based on NIO Technology 2.0, has become a new favorite of the market with its superior performance, comfort and digital experience. We witnessed a robust order inflow for the ES7 and started its deliveries at scale in August.
“We also look forward to starting the mass production and delivery of the ET5 in late September. With the compelling product portfolio and well-established brand awareness, Nio will attract a broader user base and embrace robust growth in the coming quarters," he adds.
Meanwhile, Nio chief financial officer Steven Wei Feng says the company had been working closely with its partners to ramp up the production and deliveries of its new products. “We also expect to further expand our market share in the global premium smart electric vehicle market with high operating efficiency,” says Feng.
Shares in Nio closed 38 US cents lower or 2.13% down on Sept 7 at US$17.40.
