Nio Inc. (NYSE:NIO) Q3 2018 Earnings Conference Call - Final Transcript

Nov 06, 2018 • 08:00 am ET


Nio Inc. (NYSE:NIO) Q3 2018 Earnings Conference Call - Final Transcript


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Hello, ladies and gentlemen. Thank you for standing by for NIO Incorporated's Earnings Conference Call for the Third Quarter of 2018. At this time, all participants are in listen-only mode. Today's conference call is being recorded.

I will now turn the call over to your host, Ms. Jade Wei, Senior Director of Investment Relations of the company.

Jade Wei

Thank you, Annie. Good evening, and good morning, everyone. Welcome to NIO's third quarter 2018 earnings conference call. The company's financial and operating results were published in the press release earlier today and are posted on the company's IR website. In today's call, we have Mr. William Li, NIO's Founder, Chairman and CEO; Mr. Louis Hsieh, our Chief Financial Officer; and Mr. Nick Wang, our Vice President of Finance. Mr. Nick will begin with prepared remarks and William will join for the Q&A session.

(Forward-Looking Cautionary Statements)

With that, I will now turn this call over to our CFO, Mr. Louis Hsieh. Louis, please go ahead.

Louis Hsieh

Thank you, Jade. Hello, everyone. Thank you for joining our inaugural earnings conference call today. On behalf of William and the entire NIO team, we are excited to report our first quarter as a public company, following the listing on the New York Stock Exchange on September 12th. We would like to thank our employees, investors and particularly our users, whose support has allowed us to continue our journey to fulfill our mission and to execute on our strategies.

We are pleased to report a solid set of financial results for the quarter. The smooth ramp of our JAC/NIO manufacturing facility led to the production of over 4,200 ES8s, and the brand new direct delivery system and procedures that we have created successfully delivered 3,268 vehicles in the third quarter. That generated revenues of over RMB1.4 billion, up substantially from the second quarter.

Delivery of the ES8 in October reached 1,573, slightly below September number, due to the anticipated slow deliveries in early October when vehicle registration offices were closed for the seven-day golden week national holiday in China. We utilized the time during the slower holiday period to modify our production line in our JAC/NIO plant to prepare for the future launch of our ES6. We remain confident that our Q4 deliveries will be in the range of 6,700 to 7,000 vehicles, which leads to our reaffirmed guidance that the number of ES8 deliveries will reach 10,000 in the second half of 2018.

We expect to finish production of all founders' edition ES8s within the next few weeks and plan to deliver the vast majority of them by the end of the year, as vehicle registration procedures allow. We plan to start to deliver a small number of base edition ES8s in the production order pool in early December. In the future, as our production continues to ramp, our target is to deliver ES8s to our users within two months to three months after the production order deposits are received.

The ES8s have been delivered to over