Li Bin stated at the performance conference that competition is intensifying further. The mass-market brand, Alps, is expected to begin deliveries as scheduled in the second half of next year. NIO-SW aims to produce and deliver 10,000 vehicles in July. NIO-SW expects cash flow to improve as sales rebound in the third quarter.
On June 9th, before the US stock market opened, NIO-SW released its Q1 financial report, with a total revenue of 10.68 billion yuan, lower than expected, and a narrower net loss MoM. The outlook for Q2 is worse than the same period last year.
After the release of Q1 results, NIO Inc. USD OV held an investor conference call.
NIO Inc. USD OV Chairman and CEO William Li and other executives responded to issues such as NIO-SW's breakeven point, cash flow and market competition, production capacity and delivery during the conference call.
When asked if NIO-SW would postpone the breakeven point set for Q4 this year, Chairman William Li said at the performance meeting that it would definitely be postponed based on the current situation, and NIO-SW hopes it will not exceed one year.
Regarding operating cash flow, NIO-SW stated at the performance briefing that the release of new products in Q1 and Q2 this year has affected some operating cash flow, but the current cash flow is sufficient to support the company's operations, and the current financing channels are unobstructed. NIO-SW will carefully manage cash flow, delay some fixed asset investments, and focus on some R&D projects in countries where it has already entered in Europe. With the rebound in sales in Q3, cash flow will improve. At the same time, NIO-SW emphasized that the company will not adjust prices by reducing configurations.
Regarding market competition, Li Bin said at the Q1 financial report conference call that the recent market changes have been very significant, and competition is further intensifying. NIO-SW's current focus is to ensure that a total of 8 models that have been or will be released can find target users and gain a certain market share in the target market.
Li Bin said that NIO-SW will respond to market changes more quickly to ensure the competitiveness of its products and services. He introduced that the Volkswagen brand Alpine will start delivery as scheduled in the second half of next year. In terms of investment cycle, especially the pace of investment on the market side, it will be more compact, and efficiency will be managed more carefully.
When asked about NIO-SW's current performance, Li Bin said at the performance meeting that NIO-SW's locked-in orders have reached expectations, and there will be a climbing production process in June, with the goal of producing and delivering 10,000 vehicles in July.
As for when the ET5 (standard version and hunting version) and NIO-SW can achieve the monthly sales target of 20,000 vehicles, Li Bin revealed that the difficulty lies in the ET5. After losing last year's 12,000 yuan subsidy, the final price of the ET5 is nearly 20,000 yuan more expensive. However, the ET5 hunting version will be released on June 15th and will be delivered in the same month. The user group of this car will be larger, and it is a model suitable for families.