2025-11-25 13:00Financial Data and Key Metrics Changes - In Q3 2025, total revenues reached RMB 21.8 billion, an increase of 16.7% year-over-year and 14.7% quarter-over-quarter [22] - Vehicle sales amounted to RMB 19.2 billion, up 15% year-over-year and 19% quarter-over-quarter, driven by higher deliveries [22] - Overall gross margin improved to 13.9%, compared to 10.7% in Q3 last year and 10% last quarter, reflecting higher vehicle margin and better profitability in sales of parts and services [23] - Non-GAAP operating loss narrowed by 30% quarter-over-quarter, with positive operating cash flow and free cash flow generated in Q3 [8][26] Business Line Data and Key Metrics Changes - The company delivered 87,071 smart EVs in Q3 2025, representing a year-over-year growth of 40.8% [4] - In October, deliveries reached 40,397 smart EVs, up 92.6% year-over-year, marking three consecutive months of record-high deliveries [6] - The ONVO brand's L90 model delivered over 33,000 units in three months since its launch, leading the large battery electric SUV segment [10] - The Firefly brand has established itself as a benchmark in the high-end small EV market, with plans for global expansion [11] Market Data and Key Metrics Changes - The penetration rate of battery electric vehicles (BEVs) in the premium segment increased from 12% last year to 18% in Q3 2025 [56] - In October, BEV sales volume in the large three-row SUV segment ranked first for the first time, with 39,000 units sold compared to 24,000 for range-extended vehicles [55] - The overall new energy vehicle market saw a penetration rate of 55% in Q3, driven by the growth of BEVs [55] Company Strategy and Development Direction - The company remains committed to a battery electric vehicle roadmap featuring chargeable, swappable, and upgradable batteries [8] - NIO plans to introduce five new large models next year, targeting the premium segment and aiming for a vehicle gross margin of around 20% [60] - The company is shifting its global market strategy from direct selling to a partnership-based model, starting with the Firefly brand for international expansion [87] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving quarterly break-even in Q4 despite challenges from the phase-out of trade-in subsidies [29] - The company anticipates strong demand for high-margin products like the all-new ES8, which is expected to drive sales and profitability [30] - Management expects to achieve full-year profitability on a non-GAAP basis in 2026, supported by market trends and product competitiveness [54] Other Important Information - NIO completed a total of $1.16 billion in equity financing in September, strengthening its balance sheet [16] - The company has built a global charging and swapping network with 3,641 power swap stations and over 27,000 chargers [14] Q&A Session Summary Question: What is the impact of the lower delivery guidance on the break-even target? - Management remains confident in achieving quarterly break-even in Q4 despite the lower delivery guidance due to market challenges [29] Question: When can the company achieve a monthly run rate of 50,000 units? - Management expects to achieve a monthly run rate of 50,000 units in the first half of next year, driven by new model launches and improved sales capacity [39] Question: How will the company handle the upcoming purchase tax changes? - The impact of the purchase tax changes is expected to be limited, as most users opt for battery subscription models, which are exempt from the tax [43] Question: What is the outlook for R&D expenses moving forward? - R&D expenses are expected to remain around RMB 2 billion per quarter, with a focus on improving efficiency and maintaining competitiveness [47] Question: What is the strategy for overseas expansion? - The company is transitioning to a partnership-based model for global market entry, starting with the Firefly brand [87]