[SINGAPORE] Chinese electric vehicle (EV) maker ’s net loss deepened to 7.1 billion yuan (S$1.3 billion) in the fourth quarter ended Dec 31, 2024, despite delivering a record number of vehicles in the same period.
The net loss was 27.5 per cent higher than in the year-ago period and 38.7 per cent greater than the net loss recorded in Q3, the company’s financial results showed on Friday (Mar 21).
Nio is listed in the United States, Hong Kong and Singapore.
The results brought the company’s net loss for the 2024 financial year to 22.7 billion yuan, widening by 7.1 per cent year on year.
Its loss per share for Q4 was 3.45 yuan, worse than the 3.18 yuan in the same period the year before.
This was despite a 15.2 per cent year-on-year jump in revenue to 19.7 billion yuan in Q4. Full-year revenue also rose, by 18.2 per cent to 65.7 billion yuan.
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Vehicle sales in Q4 rose 13.2 per cent year on year to 17.5 billion yuan, bringing full-year sales up 18.2 per cent to 58.2 billion yuan.
The EV maker noted that the increase in vehicle sales in Q4 was due mainly to a greater delivery volume, partially offset by a lower average selling price as a result of product mix changes.
However, the growth in delivery volume also contributed to a 4.4 per cent year-on-year rise in the cost of sales to 17.4 billion yuan, although this was partly countered by decreased material costs per vehicle.
Research and development (R&D) expenses in Q4 fell 8.5 per cent year on year to 3.6 billion yuan. This was due to lower costs associated with R&D personnel as well as design and development, resulting from different development stages for new products and technologies, Nio said.
This brought full-year R&D expenses to 13 billion yuan, 2.9 per cent lower than the year before.
But the company’s selling, general and administrative expenses rose 22.8 per cent year on year to 4.9 billion yuan in Q4, leading to a 22.2 per cent increase in full-year costs to 15.7 billion yuan.
Nio noted it has been incurring losses since its inception. Nonetheless, it believes that its financial resources “will be sufficient” to support its operations in the ordinary course of business over the next 12 months.
This is based on its going concern and liquidity assessment, which considers its business plan including revenue growth, working capital management, and the ability to raise funds from banks under available credit quotas when needed, the EV maker added.
In January, the company said it had delivered a record 72,689 vehicles in Q4, with full-year delivery standing at 221,970.
“Looking ahead to 2025, we will sharpen our focus on enhancing profitability by driving cost reductions through technological advancements, optimising operational efficiency and accelerating scalable growth,” said Stanley Qu, Nio’s chief financial officer.
The company has delivered 27,055 vehicles in the year to Feb 28, with cumulative deliveries reaching 698,619.
Shares of Nio on the Singapore bourse fell US$0.39, or 7.7 per cent, to close at US$4.66 on Friday.
