<p>In the fourth quarter, amidst the increasingly fierce competition in the domestic smart electric vehicle market, Nio has at least stabilized its footing in terms of sales, achieving a record high in delivery volume and a double-digit revenue growth against the trend, with a continuous improvement in overall vehicle gross margin.</p>
<p>On the afternoon of the 21st, Nio Inc. announced its Q4 and full-year performance report for 2024.</p>
<p>Revenue performance: Total revenue in Q4 reached 19.703 billion yuan (2.699 billion USD), a year-on-year increase of 15.2%; full-year revenue was 65.732 billion yuan (9.005 billion USD), a year-on-year increase of 18.2%;</p>
<p>Sales situation: Q4 deliveries reached 72,689 units, a record high, with a year-on-year increase of 45.2%; full-year deliveries totaled 221,970 units, a year-on-year increase of 38.7%;</p>
<p>Gross margin: Overall gross margin in Q4 was 11.7%, an increase of 420 basis points year-on-year; vehicle gross margin continued to improve: Q4 vehicle gross margin was 13.1%, an increase of 120 basis points year-on-year;</p>
<p>Loss situation: Q4 net loss was 7.112 billion yuan, a year-on-year increase of 32.5%; full-year net loss was 22.402 billion yuan, a year-on-year increase of 8.1%;</p>
<p>Cash reserves: As of the end of 2024, cash and cash equivalents, restricted cash, short-term investments, and long-term time deposits totaled 41.9 billion yuan;</p>
<p>R&amp;D investment: Q4 R&amp;D investment was 3.64 billion yuan. Total R&amp;D investment for the year was 13.037 billion yuan.</p>
<p>Guidance situation: The delivery guidance for the first quarter of 2025 is between 41,000 and 43,000 units, a year-on-year increase of approximately 36.4% to about 43.1%.</p>
<h2>Significant Increase in Sales but Average Selling Price Under Pressure</h2>
<p>Nio's Q4 delivery volume reached 72,689 units, a year-on-year increase of 45.2% and a quarter-on-quarter increase of 17.5%, setting a record high. Among them, the Ladao brand contributed 19,929 units in Q4, accounting for nearly 28%.</p>
<p>However, despite the substantial increase in delivery volume, automotive sales revenue only grew by 13.2%, indicating a decline in Nio's average selling price due to changes in the product mix, especially after the mass production of the Ladao brand.</p>
<h2>Significant Improvement in Gross Margin, Initial Results in Cost Control</h2>
<p>The overall gross margin in Q4 reached 11.7%, a significant increase of 420 basis points compared to 7.5% in the same period last year, and an increase of 100 basis points compared to 10.7% in the previous quarter. The vehicle gross margin remained stable at 13.1%, an increase of 120 basis points year-on-year. This achievement is particularly noteworthy, especially considering that the ONVO L60 is in the early production stage as a new product.</p>
<p>Li Bin pointed out in the financial report, &#34;Although the Ladao L60 is in the early stages of production, we still achieved a 13.1% vehicle gross margin. The continuous improvement in the scale and profitability of after-sales services, along with the growth of technical services, has driven other sales to generate positive quarterly gross profit.&#34;</p>
<p>The improvement in gross margin mainly stems from three aspects: reduced material costs per vehicle, an increased proportion of high-margin technical services and after-sales business, and a decrease in the loss rate of charging solutions. This indicates that Nio has made positive progress in product cost control and business structure optimization.</p>
<h2>Net Loss Expanded, Investment Losses and Exchange Rate Fluctuations as Main Causes</h2>
<p>Despite the improvement in gross margin, the net loss in Q4 reached 7.112 billion yuan, a year-on-year increase of 32.5% and a quarter-on-quarter increase of 40.6%. The non-GAAP net loss, excluding stock-based compensation expenses, was 6.622 billion yuan, a year-on-year increase of 37.9%
The main reasons for the expanded losses include:</p>
<ol>
<li>Investment income turned into losses: In the fourth quarter, the net investment loss was 170 million yuan, compared to investment income of 1.368 billion yuan and 310 million yuan in the same period last year and the previous quarter, respectively, mainly affected by changes in the fair value of equity investments.</li>
<li>Increased exchange losses: In the fourth quarter, other net losses were 528 million yuan (mainly due to exchange losses), compared to other net income of 254 million yuan and 310 million yuan in the same period last year and the previous quarter, respectively.</li>
<li>Increased selling and administrative expenses: In the fourth quarter, selling, general, and administrative expenses reached 4.878 billion yuan, a year-on-year increase of 22.8% and a quarter-on-quarter increase of 18.7%, mainly used for marketing activities of new brands and products.</li>
</ol>
<p>These factors collectively led to a significant increase in net losses, offsetting the positive impact of the improvement in gross margin.</p>
<h2>Business Strategy and Future Outlook</h2>
<p>According to NIO founder, chairman, and CEO Li Bin, 2024 marks the beginning of the company's new product cycle, and future strategies will revolve around three brand strategies:</p>
<ol>
<li>NIO brand: Continue to consolidate its leadership position in the market for pure electric vehicles priced above 300,000 yuan (currently holding a 40% market share), focusing on technology and experience-driven products.</li>
<li>ONVO brand: Positioned in the mainstream mass market, with a focus on increasing sales and enriching the product portfolio.</li>
<li>Firefly brand: Set to officially launch and begin deliveries in April this year, serving as a key driver for future international expansion.</li>
</ol>
<p>In addition, the company is continuously advancing its auxiliary and intelligent driving capabilities, with its NIO WorldModel architecture achieving breakthroughs that will gradually be promoted to all driving scenarios.</p>
<p>From a financial perspective, the company predicts that in the first quarter of 2025, it will deliver 41,000 to 43,000 vehicles, achieving revenue of 12.367 billion to 12.859 billion yuan, a year-on-year increase of approximately 24.8% to 29.8%. Chief Financial Officer Stanley Yu Qu emphasized that in 2025, the company will &#34;focus more on improving profitability by driving cost reductions through technological advancements, optimizing operational efficiency, and accelerating scalable growth.&#34;</p>
<h2>Financial Condition</h2>
<p>As of the end of 2024, NIO holds a total of 41.9 billion yuan (approximately 5.7 billion USD) in cash, cash equivalents, restricted cash, short-term investments, and long-term time deposits. Although current liabilities exceed current assets, the company believes that existing financial resources are sufficient to support normal business operations for the next 12 months.</p>
<p>Additionally, the company is advancing the NIO China strategic investment, and as of the announcement date, strategic investors have injected 2.8 billion yuan in cash into NIO China, while NIO has injected 10 billion yuan in cash</p>

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<p>Q4 deliveries reached 72,689 units, setting a new historical high, with a year-on-year increase of 45.2%. The net loss was 7.112 billion yuan, a year-on-year increase of 32.5%. The delivery guidance for the first quarter of 2025 is between 41,000 and 43,000 units, representing a year-on-year increase of approximately 36.4% to about 43.1%</p>

- In Q4 2024, NIO achieved record deliveries of 72,689 vehicles, a 45.2% year-on-year increase, with total revenue reaching 197.03 billion yuan, up 15.2%.  
- Despite the growth in deliveries, the average selling price declined, leading to a net loss of 71.12 billion yuan, primarily due to investment losses and increased foreign exchange losses.  
- NIO plans to focus on three brand strategies and aims to deliver 41,000 to 43,000 vehicles in Q1 2025, projecting revenue growth of approximately 24.8% to 29.8%.

NIO's Q4 revenue increased by 15.2% year-on-year, with a net loss of 22.4 billion yuan for the entire year | Financial Report Insights