Smart EV maker NIO reports 1Q22 net loss widened

The NIO ET5 model mid-size premium smart electric (EV) sedan, which was launched in December 2021. Credit: NIOThe NIO ET5 model mid-size premium smart electric (EV) sedan, which was launched in December 2021. In April 2022, the first batch of tooling trial builds of the ET5 rolled off the production line at the NeoPark manufacturing plant in Hefei in China. Credit: NIO

Smart electric vehicle maker NIO reported Thursday its first quarter net loss widened to CNY1.78 billion from a net loss of CNY451 million in the year-ago period.

Revenue for the three months ended 31 March rose 24.2 percent on-year to CNY9.91 billion (US$1.56 billion), the carmaker said in a filing to SGX.

The adjusted loss from operations, a non-GAAP figure which excludes share-based compensation expenses and accretion on redeemable non-controlling interest to redemption value, widened to CNY1.72 billion from a loss of CNY199.4 million in the year-earlier quarter, the filing said.

Share-based compensation costs were CNY473 million in the first quarter, up 390 percent on-year, mainly on the grant of options and restricted shares on a continued basis, the filing said.

The company said it delivered 25,768 vehicles in the first quarter, up 28.5 percent on-year and 2.9 percent on-quarter.  For April and May, NIO delivered 5,074 and 7,024 vehicles, respectively, the filing said.

William Bin Li, founder, chairman and CEO of NIO, said the first quarter market a record high for deliveries.

“Despite the volatilities of supply chain and the challenges in vehicle delivery resulting from the recent Covid-19 resurgence, we witnessed robust demand for our complementary products and achieved an all time high order inflow in May 2022,” Li said in the statement.

Steven Wei Feng, chief financial officer of NIO, added that the company has been working closely with supply-chain partners to boost production capacity and accelerate vehicle delivery.

For the outlook, NIO said it expected second quarter deliveries of 23,000 to 25,000 vehicles, up 5 percetn to 14.2 percent on-year. The company guided for second quarter revenue of CNY9.34 billion to CNY10.09 billion, up 10.6 percent to 19.4 percent on-year.