Nio Inc. (NYSE:NIO) Q4 2019 Earnings Conference Call - Final Transcript

Mar 18, 2020 • 08:00 am ET


Nio Inc. (NYSE:NIO) Q4 2019 Earnings Conference Call - Final Transcript


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Hello, ladies and gentlemen. And thank you for standing by for NIO Incorporated's Fourth Quarter and Full Year 2019 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded.

I will now turn the call over to your host, Mr. Rui Chen, Director of Investor Relations of the company. Please go ahead, Rui.

Rui Chen

Good evening and good morning everyone. Welcome to Nio's fourth quarter and full year 2019 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 Mr. William Li, Founder, Chairman of the Board, and Chief Executive Officer, Mr. Steven Feng, Chief Financial Officer, Mr. Stanley Qu, VP of Finance and Ms. Jade Wei, AVP of Investor Relations.

Before we continue, please be kindly reminded that today's discussion will contain forward-looking statements made under the safe harbor provision of the U.S. 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 U.S. 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 this conference call include discussions of the 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, Mr. William Li. William, go ahead, please. William Li, NIO Limited - Founder, Chairman & CEO [3] [Foreign Speech] Hello, everyone, and thank you for joining our 2019 Q4 earnings call today. [Foreign Speech] We delivered a combined 8,224 ES8 and ES6 vehicles in the fourth quarter of 2019 representing a 71% sequential increase from the prior quarter. Cumulative deliveries of ES8 and the ES6 reached 20,565 in 2019, representing an 81% increase from 2018. [Foreign Speech] The COVID-19 has broken out in China since January 2020. The overall sales and deliveries of the auto industry in China are materially impacted, and the passenger vehicle sales in China slumped 41% in total in January and February 2020, compared to the same period last year. Against this backdrop, Nio has delivered a total of 2,305 vehicles in January and February, which is lower than our target prior to the outbreak. [Foreign Speech] In response to the microenvironment, on one hand, we have actively explored a variety of online channels, including wide-streaming platforms, and fully leveraged the well-developed online functions of Nio app to promote online sales. Nio's end-to-end direct sales business process has enabled us to continue our sales efforts during this special time. On the other hand, from spring festival to now, Nio has maintained 24/7 maintenance and power services through