Business Overview - In Q2, the company delivered 72,056 smart electric vehicles, representing a year-on-year growth. The NIO brand refreshed four models for 2025, enhancing competitiveness. The ONVO brand showed positive trends in the family car market, while the Firefly model received a strong market response as a high-end compact car. Deliveries in July and August were 21,017 and 31,305 vehicles, respectively. The company expects total deliveries in Q3 to reach 87,000 to 91,000 units, a year-on-year increase of 40.7% to 47.1% [1][2][3] - Financially, the gross margin for complete vehicles remained stable, while the gross margin for other businesses improved significantly. The non-GAAP operating loss in Q2 narrowed by over 30% quarter-on-quarter due to cost optimization measures [1][4] Key Financial Data - Total revenue reached 19 billion yuan, a year-on-year increase of 9% and a quarter-on-quarter increase of 57.9%. Vehicle sales revenue was 16.1 billion yuan, up 2.9% year-on-year and 62.3% quarter-on-quarter, primarily driven by increased delivery volumes [4][5] - The gross margin for complete vehicles was 10.3%, down from 12.2% year-on-year but stable compared to the previous quarter. This decline was mainly due to changes in product structure, partially offset by a decrease in unit material costs [4][5] - The comprehensive gross margin improved to 10% from 9.7% year-on-year and 7.6% quarter-on-quarter, driven by an increase in the proportion of revenue from used cars and technical services [5] - R&D expenses were 3 billion yuan, down 6.6% year-on-year and 5.5% quarter-on-quarter, mainly due to differences in design and development phases [6] - Operating loss was 4.9 billion yuan, a decrease of 5.8% year-on-year and 23.5% quarter-on-quarter. Adjusted operating loss was 4 billion yuan, down 14% year-on-year and 32.1% quarter-on-quarter [7] - Net loss was 5 billion yuan, a decrease of 1% year-on-year and 22% quarter-on-quarter. Adjusted net loss was 4.1 billion yuan, down 9% year-on-year and 34.3% quarter-on-quarter [7] Product and Market Strategy - The company launched the new third-generation ES8 and ONVO L90, which are expected to drive the full electrification of large luxury SUVs and boost overall sales. The battery swap network's effects are becoming more apparent, attracting more users to experience its unique value [4][8] - The company has established a comprehensive sales and service network with 176 NIO centers, 416 NIO spaces, and 414 online stores, along with 388 service centers and 68 delivery centers [3] - The global battery swap stations reached 3,542, with over 8.4 million swaps completed. The company also has over 27,000 fast charging and destination charging piles, leading the industry in charging infrastructure [3] - The company aims for a long-term gross margin target of 20%, with specific targets for different brands: NIO brand at 25%, ONVO at no less than 15%, and Firefly around 10% [10]

Core Viewpoint - NIO's revenue increased significantly in Q1 2025, driven by a rise in vehicle deliveries, although the company still reported a substantial operating loss [2][7]. Group 1: Financial Performance - In Q1 2025, NIO's total revenue reached 12.035 billion yuan, a year-on-year increase of 21.5% [2][7]. - The operating loss for the same period was 6.148 billion yuan, up 19% year-on-year [2][7]. - Adjusted operating loss (non-GAAP) was 5.947 billion yuan, reflecting a 16.3% increase compared to the previous year [7]. - Gross profit for Q1 2025 was 919.6 million yuan, representing an 88.5% year-on-year increase, with a gross margin of 7.6%, up from 4.9% in the same period last year [8]. Group 2: Vehicle Deliveries - NIO delivered 42,100 vehicles in Q1 2025, marking a 40.07% increase year-on-year [3][10]. - The company expects vehicle deliveries for Q2 2025 to be between 72,000 and 75,000 units, an increase of approximately 25.5% to 30.7% compared to Q2 2024 [6][13]. Group 3: Research and Development - R&D expenses for Q1 2025 amounted to 3.181 billion yuan, a year-on-year increase of 11.1% [4][11]. - The increase in R&D expenses is attributed to higher costs associated with the design and development of new products and technologies [11]. Group 4: Other Financial Metrics - Other sales revenue for Q1 2025 was 2.095 billion yuan, up 37.2% year-on-year, driven by increased sales of parts, accessories, and after-sales services [11]. - As of March 31, 2025, NIO had cash and cash equivalents totaling 26 billion yuan (approximately 3.6 billion USD) [12]. Group 5: Future Outlook - NIO aims to achieve breakeven in Q4 2025, with expectations of reaching a monthly sales volume of 25,000 units for the NIO brand, a 25% increase from the previous year's steady state of 20,000 units [6][15]. - The company plans to implement cost control measures and improve operational efficiency starting from Q2 2025 [15][16].