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Nio (NYSE: NIO) reported total revenues of RMB17.1 billion in the fourth quarter of 2023, an increase of 6.5 percent from the fourth quarter of 2022 and a decrease of 10.3 percent from the third quarter of 2023.

Net loss for the fourth quarter of 2023 was RMB5.37 billion, a decrease of 7.2 percent from the fourth quarter of 2022 and an increase of 17.8 percent from the third quarter of 2023.

Below is its statement, as the CnEVPost article is being updated.

Financial Results for the Fourth Quarter and Full Year of 2023

Revenues

Total revenues in the fourth quarter of 2023 were RMB17,103.2 million (US$2,408.9 million), representing an increase of 6.5% from the fourth quarter of 2022 and a decrease of 10.3% from the third quarter of 2023.

Total revenues for the full year of 2023 were RMB55,617.9 million (US$7,833.6 million), representing an increase of 12.9% from the previous year.

Vehicle sales in the fourth quarter of 2023 were RMB15,438.7 million (US$2,174.5 million), representing an increase of 4.6% from the fourth quarter of 2022 and a decrease of 11.3% from the third quarter of 2023.

The increase in vehicle sales over the fourth quarter of 2022 was mainly due to the increase in delivery volume, partially offset by the lower average selling price as a result of changes in product mix. The decrease in vehicle sales over the third quarter of 2023 was mainly attributed to a decrease in delivery volume.

Vehicle sales for the full year of 2023 were RMB49,257.3 million (US$6,937.7 million), representing an increase of 8.2% from the previous year.

Other sales in the fourth quarter of 2023 were RMB1,664.5 million (US$234.4 million), representing an increase of 27.6% from the fourth quarter of 2022 and an increase of 0.4% from the third quarter of 2023.

The increase in other sales over the fourth quarter of 2022 was mainly due to the increase in sales of accessories and provision of power solutions, as a result of continued growth in the number of our users. Other sales remained relatively stable compared with the third quarter of 2023.

Other sales for the full year of 2023 were RMB6,360.7 million (US$895.9 million), representing an increase of 69.1% from the previous year.
Cost of Sales and Gross Margin

Cost of sales in the fourth quarter of 2023 was RMB15,823.9 million (US$2,228.8 million), representing an increase of 2.5% from the fourth quarter of 2022 and a decrease of 9.8% from the third quarter of 2023. Cost of sales remained relatively stable compared with the fourth quarter of 2022. The decrease in cost of sales over the third quarter of 2023 was mainly attributable to a decrease in delivery volume.

Cost of sales for the full year of 2023 was RMB52,566.1 million (US$7,403.8 million), representing an increase of 19.1% from the previous year.

Gross profit in the fourth quarter of 2023 was RMB1,279.2 million (US$180.2 million), representing an increase of 105.7% from the fourth quarter of 2022 and a decrease of 16.0% from the third quarter of 2023.

Gross Profit for the full year of 2023 was RMB3,051.8 million (US$429.8 million), representing a decrease of 40.7% from the previous year.

Gross margin in the fourth quarter of 2023 was 7.5%, compared with 3.9% in the fourth quarter of 2022 and 8.0% in the third quarter of 2023.

The increase of gross margin over the fourth quarter of 2022 was mainly attributed to the increased vehicle margin. The decrease of gross margin over the third quarter of 2023 was mainly attributed to the decrease in margin from provision of power solutions as a result of expanded power network, and partially offset by the higher vehicle margin.

Gross margin for the full year of 2023 was 5.5%, compared with 10.4% for the full year of 2022.

Vehicle margin in the fourth quarter of 2023 was 11.9%, compared with 6.8% in the fourth quarter of 2022 and 11.0% in the third quarter of 2023. The increase in vehicle margin from the fourth quarter of 2022 was mainly attributable to (i) the decreased material cost per unit, and (ii) the inventory provisions, accelerated depreciation on production facilities, and losses on purchase commitments for the previous generation of ES8, ES6 and EC6 recorded in the fourth quarter of 2022. The increase in vehicle margin from the third quarter of 2023 was mainly due to the decreased material cost per unit.

Vehicle margin for the full year of 2023 was 9.5%, compared with 13.7% for the full year of 2022.
Operating Expenses

Research and development expenses in the fourth quarter of 2023 were RMB3,972.1 million (US$559.5 million), representing a decrease of 0.2% from the fourth quarter of 2022 and an increase of 30.7% from the third quarter of 2023. Excluding share-based compensation expenses, research and development expenses (non-GAAP) were RMB3,616.4 million (US$509.4 million), representing an increase of 1.8% from the fourth quarter of 2022 and an increase of 36.8% from the third quarter of 2023.

Research and development expenses remained relatively stable compared with the fourth quarter of 2022. The increase in research and development expenses over the third quarter of 2023 was mainly due to the incremental design and development costs for new products and technologies as well as the increased personnel costs in research and development functions.

Research and development expenses for the full year of 2023 were RMB13,431.4 million (US$1,891.8 million), representing an increase of 23.9% from the previous year. Excluding share-based compensation expenses, research and development expenses (non-GAAP) were RMB11,914.2 million (US$1,678.1 million), representing an increase of 25.2% from the previous year.

Selling, general and administrative expenses in the fourth quarter of 2023 were RMB3,972.7 million (US$559.5 million), representing an increase of 12.6% from the fourth quarter of 2022 and an increase of 10.1% from the third quarter of 2023.

Excluding share-based compensation expenses, selling, general and administrative expenses (non-GAAP) were RMB3,781.5 million (US$532.6 million), representing an increase of 16.1% from the fourth quarter of 2022 and an increase of 10.4% from the third quarter of 2023. The increase in selling, general and administrative expenses over the fourth quarter of 2022 and the third quarter of 2023 was mainly attributable to (i) the increase in personnel costs related to sales functions, and (ii) the increase in sales and marketing activities.

Selling, general and administrative expenses for the full year of 2023 were RMB12,884.6 million (US$1,814.8 million), representing an increase of 22.3% from the previous year. Excluding share-based compensation expenses, selling, general and administrative expenses (non-GAAP) were RMB12,116.7 million (US$1,706.6 million), representing an increase of 25.8% from last year.
Loss from Operations

Loss from operations in the fourth quarter of 2023 was RMB6,625.3 million (US$933.2 million), representing a decrease of 1.6% from the fourth quarter of 2022 and an increase of 36.8% from the third quarter of 2023. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB6,059.3 million (US$853.4 million) in the fourth quarter of 2023, representing an increase of 0.7% from the fourth quarter of 2022 and an increase of 42.9% from third quarter of 2023.

Loss from operations for the full year of 2023 was RMB22,655.2 million (US$3,190.9 million), representing an increase of 44.8% from last year. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB20,286.1 million (US$2,857.2 million) in 2023, representing an increase of 52.0% from last year.

Net Loss and Earnings Per Share/ADS

Interest and investment income in the fourth quarter of 2023 was RMB1,368.1 million (US$192.7 million), representing an increase of 288.7% from the fourth quarter of 2022 and an increase of 375.0% from the third quarter of 2023.

The increase was primarily attributed to the recycling of unrealized gain from other comprehensive income to investment income of RMB977.3 million for the available-for-sale debt investment.

Net loss in the fourth quarter of 2023 was RMB5,367.7 million (US$756.0 million), representing a decrease of 7.2% from the fourth quarter of 2022 and an increase of 17.8% from the third quarter of 2023.

Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB4,801.7 million (US$676.3 million) in the fourth quarter of 2023, representing a decrease of 5.2% from the fourth quarter of 2022 and an increase of 21.5% from the third quarter of 2023.

Net loss for the full year of 2023 was RMB20,719.8 million (US$2,918.3 million), compared with net loss of RMB14,437.1 million in 2022. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB18,350.7 million (US$2,584.6 million) in 2023.

Net loss attributable to NIO's ordinary shareholders in the fourth quarter of 2023 was RMB 5,592.8 million (US$787.7 million), representing a decrease of 4.3% from the fourth quarter of 2022 and an increase of 20.8% from the third quarter of 2023. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted net loss attributable to NIO's ordinary shareholders (non-GAAP) was RMB 4,948.0 million (US$696.9 million) in the fourth quarter of 2023.

Net loss attributable to NIO's ordinary shareholders for the full year of 2023 was RMB 21,147.0 million (US$2,978.5 million). The net loss attributable to NIO's ordinary shareholders was RMB14,559.4 million in 2022. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted net loss attributable to NIO's ordinary shareholders (non-GAAP) was RMB18,474.8 million (US$2,602.1 million) in 2023.

Basic and diluted net loss per ordinary share/ADS in the fourth quarter of 2023 were both RMB3.18 (US$0.45), compared with RMB3.55 in the fourth quarter of 2022 and RMB2.67 in the third quarter of 2023. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted basic and diluted net loss per share/ADS (non-GAAP) were both RMB2.81 (US$0.39), compared with RMB3.07 in the fourth quarter of 2022 and RMB2.28 in the third quarter of 2023.

Basic and diluted net loss per ADS for the full year of 2023 were both RMB12.44 (US$1.75). Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted basic and diluted net loss per ADS (non-GAAP) were both RMB10.87 (US$1.52) in 2023.

Balance Sheet

Balance of cash and cash equivalents, restricted cash, short-term investment and long-term time deposits was RMB57.3 billion (US$8.1 billion) as of December 31, 2023.

Business Outlook

For the first quarter of 2024, the Company expects:

Deliveries of vehicles to be between 31,000 and 33,000 vehicles, representing a decrease of approximately 0.1% to an increase of approximately 6.3% from the same quarter of 2023.

Total revenues to be between RMB10,499 million (US$1,479 million) and RMB11,087 million (US$1,562 million), representing a decrease of approximately 1.7% to an increase of approximately 3.8% from the same quarter of 2023.

This business outlook reflects the Company's current and preliminary view on the business situation and market condition, which is subject to change.