Nio Inc. (NYSE:NIO) Q3 2019 Earnings Conference Call - Final Transcript
Dec 30, 2019 • 07:00 am ET
Hello, ladies and gentlemen, thank you for standing by for NIO Incorporated's Third Quarter 2019 Earnings Conference Call. [Operator Instructions]
I will now turn the call over to your host, Ms. Jade Wei, Associate Vice President of Investor Relations of the Company. Please go ahead, Jade.
Thank you, Edison.
Good evening and good morning, everyone. Welcome to NIO's third quarter 2019 earnings conference call. The Company's financial and operating results were published in a press release early today and are posted on the Company's IR website.
On today's call we have Mr. William Li, Founder, Chairman of the Board and Chief Executive Officer; Mr. Steven [Phonetic] Feng, Chief Financial Officer; and Mr. Stanley Qu, VP of Finance.
Before we continue, please kindly be reminded that today's discussion may 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 laws.
Please also note that NIO's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Please refer to NIO's press release, which contains a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures.
With that, I will now turn the call over to our CEO, William.
William, please go ahead.
Hello, everyone, and thank you for joining our call today.
In the third quarter 2019 we delivered a total of 4,799 ES8 and ES6 vehicles, increasing 35% from the second quarter and exceeding the top end of our guidance range by 9%. We delivered 5,054 [Phonetic] vehicles in October and November. We estimate that the total delivery of Q4 will reach over 8,000.
The auto industry is still experiencing substantial softness, and the EV sector particularly dropped over 35% year-on-year in sales in the second half of 2019 after the EV subsidies were reduced significantly. Nevertheless, our order backlog growth has accelerated since September and this strength in order flow continued in the fourth quarter. The growth has been underpinned by three key factors: strong competitiveness of our ES6 and its quality, performance and pricing, strong support from our user community and our sales network expansion through the efficient new spaces. I will discuss these three factors separately next.
In August, NIO ranked as the highest in new vehicle quality among all brands in JD Power's 2019 New Energy Vehicle Experience Index Study. In December, our ES6 was selected by the most respected industry experts in the Chinese automotive industry to receive [Indecipherable] award as Car of the Year for its achievements in innovation, mobility and industry contribution. This demonstrates the strong recognition