Nio Inc. (NYSE:NIO) Q4 2018 Earnings Conference Call - Final Transcript

Mar 05, 2019 • 07:00 pm ET


Nio Inc. (NYSE:NIO) Q4 2018 Earnings Conference Call - Final Transcript


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Hello, ladies and gentlemen. Thank you for standing by for NIO Incorporated's Fourth Quarter and Full Year 2018 Earnings Conference Call. At this time, all participants are in a 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 Investor Relations of the company. Please go ahead, Jade.

Jade Wei

Thank you, Christian. Good evening, and good morning, everyone. Welcome to NIO's fourth quarter and full-year 2018 earnings conference call. The company's financial and operating results were published in the press release earlier today and are posted at the company's IR website.

On today's call, we have, in Beijing, Mr. William Li, Founder, Chairman of the Board and Chief Executive Officer; and in Hong Kong, Mr. Louis Hsieh, our Chief Financial Officer; and Mr. Nick Wang, our VP of Finance. Louis and Nick will begin with prepared remarks, and William will join for the Q&A session.

Before we continue, please be kindly reminded that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today.

Further information regarding risks and uncertainties is included in certain filings of the company with the US Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law.

Please also note that NIO's earnings press release and its conference call includes discussions of unaudited GAAP financial information, as well as unaudited non-GAAP financial measures. Please refer to NIO's press release, which contains reconciliation of the unaudited non-GAAP measures to comparable GAAP measures.

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

Louis Hsieh

Thank you, Jade. Hello, everyone. Thank you for joining us today. We are pleased to report our fourth quarter and first full-year results as a public company. Our results reflect broad-based accomplishments across the organization and provides with a strong base for moving forward in 2019. I'll begin with some highlights.

In Q4 2018, production continued to ramp for our NIO/JAC manufacturing sites, and we delivered 7,980 ES8s during the quarter to bring our total deliveries to 11,348 units for 2018, which helped strengthen the ES8 brand and solidified our leadership position among the premium electric seven-seater SUVs.

Revenues increased 134% sequentially from the third quarter, and total revenue reached RMB4.95 billion for the first year, following our initial deliveries in June 2018. In December 2018, we launched the ES6, our five-seater high-performance premium electric SUV, as well as the six-seater ES8 version, the seven-passenger SUV in the -- also, we have a six-seater version. These launches exemplify our focus on continued market penetration through enhanced products and services.

We remain confident in our growth prospects in the coming year. We expect a greater-than-anticipated sequential decrease in deliveries in