Chinese EV maker Nio narrows Q2 loss on improved vehicle sales

SINGAPORE – Chinese electric vehicle (EV) maker Nio narrowed its second-quarter loss for financial year 2024 by 16.7 per cent to 5.05 billion yuan (S$927 million) on higher sales.

Nio is listed in the United States, Hong Kong and Singapore.

The company’s vehicle sales more than doubled to 15.7 billion yuan for the period ended June 20, 2024. Vehicle sales margin improved by 12.2 per cent, compared to 6.2 per cent in the year-ago period.

Nio is engaged in the sale of accessories and provision of power solutions. Revenue for other sales amounted to 1.8 billion yuan, up 11.3 per cent over the corresponding period in 2023.

Loss per share stood at 2.21 yuan, lower than the 3.70 yuan loss per share in the year-ago period.

“Nio’s core competitive advantages in technology, product, service and community are earning increasing recognition from users, driving the continued strong vehicle sales performance,” said chairman and chief executive officer William Bin Li on Sept 5.

He added that total delivery volume for the third quarter is “expected to set another record”.

Nio expects to deliver between 61,000 and 63,000 vehicles in the third quarter, representing an increase of between 10 and 13.7 per cent from the same quarter of 2023.

Revenue is forecast to come between 19.1 billion yuan and 19.7 billion yuan, translating into an increase of between 0.2 and 3.2 per cent, compared with the year-ago period.

Nio shares traded in Singapore closed 0.9 per cent or US$0.04 higher at US$4.36 on Sept 5, before the results were announced. THE BUSINESS TIMES