Electric vehicle (EV) manufacturer Nio published on Thursday its second quarter earnings results posting a revenue increase of 98.9 per cent year over year mainly attributed to the 144 per cent surge in vehicle deliveries.
The company reported a vehicle margin of 12.2 per cent in the second quarter, nearly doubling from the 6.2 per cent reported a year ago and up sequentially from the 9.2 per cent reported in the first three months of the year.
Gross margin also improved to 9.7 per cent, up from 1.0 per cent a year ago and from 4.9 per cent reported in the first quarter of the year.
Nio delivered 57,373 vehicles between April and June achieving a new quarterly record.
The company reported a loss of 5,209.3 million yuan ($716.8 million), decreasing by 14.2 per cent year over year and also sequentially by 3.4 per cent.
Stanley Yu Qu, Nio’s chief financial officer, said, “Due to ongoing cost optimizations, our vehicle gross margin increased to 12.2% in the second quarter”.
“We will continue to focus on efficient R&D and infrastructure investment, leverage the growth potential in the mass market, adopt flexible market strategies and continuously optimize our product portfolio. We are confident that these efforts will result in steady improvements in gross profit and cost efficiency in the future,” the new CFO added.
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