Nio’s Net Loss Deepens Despite Record Vehicle Deliveries
Chinese electric vehicle (EV) maker Nio’s net loss deepened to 7.1 billion yuan (S$1.3 billion) in the fourth quarter ended Dec 31, 2024, despite delivering a record number of vehicles in the same period.
Financial Results
The net loss was 27.5 per cent higher than in the year-ago period and 38.7 per cent greater than the net loss recorded in Q3, the company’s financial results showed on Friday (Mar 21).
Nio is listed in the United States, Hong Kong and Singapore.
Full-Year Results
The results brought the company’s net loss for the 2024 financial year to 22.7 billion yuan, widening by 7.1 per cent year on year.
Its loss per share for Q4 was 3.45 yuan, worse than the 3.18 yuan in the same period the year before.
Revenue
This was despite a 15.2 per cent year-on-year jump in revenue to 19.7 billion yuan in Q4. Full-year revenue also rose, by 18.2 per cent to 65.7 billion yuan.
Vehicle Sales
Vehicle sales in Q4 rose 13.2 per cent year on year to 17.5 billion yuan, bringing full-year sales up 18.2 per cent to 58.2 billion yuan.
Cost and Expenses
The EV maker noted that the increase in vehicle sales in Q4 was due mainly to a greater delivery volume, partially offset by a lower average selling price as a result of product mix changes.
However, the growth in delivery volume also contributed to a 4.4 per cent year-on-year rise in the cost of sales to 17.4 billion yuan, although this was partly countered by decreased material costs per vehicle.
Research and Development
Research and development (R&D) expenses in Q4 fell 8.5 per cent year on year to 3.6 billion yuan. This was due to lower costs associated with R&D personnel as well as design and development, resulting from different development stages for new products and technologies, Nio said.
Looking Ahead
“Looking ahead to 2025, we will sharpen our focus on enhancing profitability by driving cost reductions through technological advancements, optimising operational efficiency and accelerating scalable growth,” said Stanley Qu, Nio’s chief financial officer.
Conclusion
Nio’s financial results for the 2024 financial year showed a net loss of 22.7 billion yuan, despite a record number of vehicle deliveries. The company’s revenue increased by 18.2 per cent to 65.7 billion yuan. However, the cost of sales rose 4.4 per cent year on year to 17.4 billion yuan.
FAQs
Q: What was Nio’s net loss for the 2024 financial year?
A: 22.7 billion yuan
Q: What was the increase in revenue for the 2024 financial year?
A: 18.2 per cent
Q: What was the cost of sales in Q4?
A: 17.4 billion yuan
Q: What was the decrease in R&D expenses in Q4?
A: 8.5 per cent
Q: What is Nio’s plan for 2025?
A: To sharpen its focus on enhancing profitability by driving cost reductions through technological advancements, optimising operational efficiency and accelerating scalable growth.
