AutoBeta(AutoBeta.net)09/26 Report--

During the announcement of second-quarter results, NIO suddenly cancelled its earnings conference call. On that day, NIO's shares fell sharply, hitting an all-time low of $1.97. U.S. stocks closed at 5 a.m. on September 26, and NIO shares closed at $2.05.

On September 25, Xilai announced that it would hold a second-quarter earnings conference at 20:00 Beijing time. NIO management responded to external news and problems, including losses, layoffs, future development plans, and so on.

NIO's second-quarter results showed that revenue was 1.508 billion yuan, higher than the market expectation of 1.309 billion yuan, while the net loss attributed to shareholders in the second quarter was 3.285 billion yuan, higher than the market expectation of 2.944 billion yuan, compared with a loss of 6.11 billion yuan in the same period last year.

In the first half of 2019, NIO made a cumulative loss of 5.9086 billion yuan, of which the net loss in the first quarter reached 2.6236 billion yuan. According to Bloomberg, the loss in the past four years is more than 40 billion yuan, which is equivalent to Tesla's loss in 15 years.

In the phone response to the financial report, Ulai first clarified the rumors of a loss of 40 billion yuan. NIO clarified that the company's current loss is actually 22 billion yuan.

The financial report shows that the company lost 3.285 billion yuan in the second quarter. When talking about why the company's profit margin fell sharply in the second quarter, Ulai said that the car recall was an important reason for the sharp decline in its profit margin. The company said that if the recall cost of 339 million yuan was deducted, its profit margin on car sales would have been-4%, up from-7.2% in the first quarter.

At the same time, NIO expects gross profit margin to remain negative this year.

As for the decline in car sales, NIO said in the financial report that subsidies for major electric vehicles have been greatly reduced, and the macro environment is unfavorable.

In terms of new car delivery, Ulai said that the basic ES6 model will be shipped this month, which has a low gross margin and will be delivered to the ES6 Premium version in the fourth quarter, with a relatively high gross margin.

With regard to layoffs, the number of employees of Xilai will be reduced from more than 9000 to more than 7000 by the end of September, and the number of employees will continue to be reduced in the third quarter and before the end of the year.

Finally, NIO delivered 3989 new cars in the first quarter and 3553 in the second quarter. NIO expects to deliver between 4200 and 4400 vehicles in the third quarter.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat