2025-09-02 13:00Financial Data and Key Metrics Changes - In Q2 2025, total revenues reached ¥19 billion, an increase of 9% year over year and 57.9% quarter over quarter [38] - Vehicle sales were ¥16.1 billion, up 2.9% year over year and 62.3% quarter over quarter [38] - Vehicle gross margin was 10.3%, compared to 12.2% in Q2 last year and 10.2% last quarter [39] - Overall gross margin was 10%, down from 39.7% in Q2 last year but up from 7.6% last quarter [39] - Non-GAAP operating loss narrowed more than 30% quarter over quarter [10] Business Line Data and Key Metrics Changes - The company delivered 72,056 smart electric vehicles in Q2, a 25.6% increase year over year [5] - The ONVO L90 achieved a historical high of 10,575 deliveries in its first full month [18] - Over 10,000 Firefly vehicles were delivered within three months, making it the best-selling model in the high-end small EV market [21] Market Data and Key Metrics Changes - NIO's power swap network includes 3,542 stations worldwide, with over 1,000 on highways in China [26] - The company has provided over 84 million swaps to users, significantly reducing range anxiety [26] - The market for large three-row battery electric SUVs is growing, with a 39% year-over-year increase in the BEV segment [120] Company Strategy and Development Direction - The company is focusing on a multi-brand strategy to capture greater market shares across various segments [34] - Continuous investment in technology innovation and infrastructure is expected to enhance market competitiveness [28] - The launch of the all-new ES8 and ONVO L90 is anticipated to drive the transition towards full electrification in the large SUV market [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a substantial improvement in financial performance due to rising sales and improving gross margins [35] - The company aims for a quarterly non-GAAP break-even target in Q4 2025 [59] - The competitive landscape is shifting towards battery electric vehicles, with a growing user acceptance and demand for large SUVs [120] Other Important Information - R&D expenses were ¥3 billion, a decrease of 6.6% year over year and 5.5% quarter over quarter [39] - SG&A expenses were ¥4 billion, up 5.5% year over year but down 9.9% quarter over quarter [40] - The company operates 176 NIO Houses and 416 NIO Spaces, along with 388 service centers [24] Q&A Session Summary Question: Updates on ES8 and L90's capacity ramp and delivery targets - Management confirmed that they expect to achieve a monthly delivery target of 50,000 units across all brands in Q4 2025, with specific targets for the L90 and ES8 [45][46] Question: Gross profit margin expectations for Q4 - Management anticipates vehicle gross margins to improve to 16% to 17% in Q4, with specific targets of 20% for the L90 and ES8 [49][50] Question: R&D and SG&A expense guidance for Q3 and Q4 - R&D expenses are expected to remain around ¥2 billion per quarter, while SG&A expenses are targeted to be within 10% of sales revenue in Q4 [59][62] Question: New model pipeline for 2026 - Management confirmed plans for three large SUV models and emphasized that no new models will be launched in 2025 due to capacity constraints [97][100] Question: Impact of the 100 kWh battery on financials - The introduction of the 100 kWh battery as a standard configuration is expected to have a positive impact on sales leads without major changes to vehicle margins [107][108] Question: Cost savings from self-developed chips - Management indicated that while the cost savings per unit from in-house developed chips are not directly tied to delivery volumes, the overall cost structure remains competitive [111][112]