AutoBeta(AutoBeta.net)11/11 Report--

On November 10, Xilai announced its results for the third quarter of 2022. According to the third-quarter results, the total revenue of Lulai Motor in the third quarter was 13.0021 billion yuan, up 32.6 percent from the same period last year, while the net loss in the third quarter was 4.1108 billion yuan, up 392.1 percent from the same period last year. The loss increased by 49.1% compared with the previous quarter. Excluding equity incentive expenses, the adjusted net loss was 3.4989 billion yuan, an increase of 514.2% over the same period last year and 54.3% over the previous quarter. Gross margin in the third quarter was 16.4%, down 0.3% from the second quarter of 2022. In response to the decline in gross profit margin, Ulai said that the rise in battery costs is the main reason for the decline in sales. It is worth mentioning that according to the sales figures for the third quarter released earlier, it delivered a total of 31607 new cars in the third quarter, which can be calculated as a loss of 110000 per car sold in terms of sales and net loss in the third quarter.

In recent years, with the rise in the price of upstream raw materials, the profits and gross profit levels of downstream car companies have declined. Li Bin, CEO of NIO, also said that the current rise in battery prices is no longer a matter of supply and demand, and the price of lithium carbonate did not decline as expected in the fourth quarter. It says the price of lithium carbonate will return to normal, but it is difficult to predict when the price will fall. According to NIO's calculations, if the unit price of lithium carbonate falls to 400000 yuan, the gross profit margin will rise by 4 points. Li Bin said that if battery prices return to rationality, then the company's gross profit margin will remain at 20% to 25%. But at present, the price of lithium has not yet peaked. According to the latest data released by Shanghai Iron and Steel Federation, the average spot price of battery-grade lithium carbonate rose 5000 yuan / ton to 587500 yuan / ton, a record high. The highest price in the market is 595000 yuan / ton. At the same time, the prices of industrial-grade lithium carbonate and lithium hydroxide have increased. In addition to the negative impact of rising prices of key raw materials on gross profit margins, continued high investment in research and development is also an important reason for the expansion of losses.

In addition, according to financial reports, research and development spending on Lulai accounted for about 30% of sales in the third quarter, up from about 20% in the second quarter of 2022. As of September 30, 2022, cash and cash equivalents, restricted cash, short-term investments and long-term term deposits totaled 51.4 billion yuan (US $7.2 billion). Xilai said it expected to deliver 43000 to 48000 vehicles in the fourth quarter. It is understood that Xilai delivered 10059 cars in October. This also means that it will have to deliver between 33000 and 38000 vehicles in November and December, and sales will have to reach more than 16500 a month to meet its target. From the current point of view, there may be some difficulty.

According to earlier media reports, due to the requirements of epidemic prevention and control in October this year, production at the F1 and F2 plants in Hefei have been suspended one after another, and the delivery of its models has generally been delayed. In response to the incident, NIO said, "production was seriously affected by the epidemic in October." It is understood that the F1 factory is the main production force at present, mainly producing models such as ES8, ES6, EC6, ET7 and ES7, with an annual planned capacity of 300000 vehicles; F2 factory began to officially put into production in the third quarter of this year, and the main production model is ET5, which is still in the capacity climbing stage.

In response to the shutdown of the Hefei plant, Li Bin also pointed out at the earnings call that the impact of the October epidemic on the Anhui plant for nearly a week, coupled with the impact of supply chain and other factors, reduced the production capacity of about 2,000 to 3,000 units. However, a new EDS (electric drive) production line will be added next week, and the production capacity climbing will be completed by the end of the month; the supply of subframe is basically solved at present, and it is expected that the ET5 production capacity climbing will reach the expected level in December, and hopes to exceed the target of 20, 000 units.

For the next product layout, Li Bin revealed, "We have five models that will be launched in the first half of next year, and there will always be a Model Y that will be NIO." We pay more attention to the total number of products on the same platform, and our overall strategy is to meet the needs of high-end users in a more efficient way. By June next year, we will have eight cars on sale to meet the diverse needs of users. We have confidence in total sales. " As for when to make a profit, Li Bin said that in 2023, the Q4Tech NIO brand can break even. It is understood that at present, there are ES8, ES6, EC6, ET7, ET5 and ES7 models on the market, and the prices of the six models are all above 300000 yuan. Judging from the continuous expansion of its product matrix, its competitiveness in the high-end pure electricity market is gradually strengthening. in the short term, the continuous introduction of new models is still expected to lead to a gradual rise in brand sales.

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