Nio Inc. (NYSE:NIO) Q2 2020 Earnings Conference Call - Final Transcript
Aug 11, 2020 • 08:00 am ET
Hello, ladies and gentlemen. Thank you for standing by for NIO Incorporated, Second Quarter 2020 Earnings Conference Call. [Operator Instructions]. I will now turn the call over to your host, Mr. Rui Chen, Director of Investor Relations of the Company. Please go ahead, Rui. Thank you.
Thank you, Operator. Good evening, and good morning, everyone. Welcome to NIO's Second Quarter 2020 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 CEO; Mr. Steven Feng, CFO; Mr. Stanley Qu, VP of Finance and Mr. 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 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 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 financial measures to comparable GAAP measures. With that, I will now turn the call over to our CEO, Mr. William Li. William, go ahead, please.
[Foreign Speech]. Hello, everyone. Thank you for joining NIO's 2020 Q2 earnings call.
[Foreign Speech]. In the second quarter of 2020, NIO achieved a record quarterly deliveries of over 10,000 units, and delivered an aggregate of 10,331 ES8 and ES6, representing a strong growth of 190.8% year-over-year and 169.2% quarter-over-quarter. In July 2020, NIO delivered 3,533 units, marking the second highest monthly delivery results. The cumulative deliveries in the first seven months of 2020 increased by 111.3% over the same period of 2019. Starting from October 2019, ES6 has ranked as the top selling SUV across all EV sectors in China. For the first half of this year, ES8 has also achieved a number one in sales among mid to large size luxury electric SUVs priced above RMB400,000 in China.
[Foreign Speech]. In the third quarter, we are confident to achieve a new quarterly record of 11,000 to 11,500 deliveries.
[Foreign Speech]. As for the gross margin, with the strong momentum of quarterly deliveries, rise of average selling price, reduction of a battery pack and other BOM costs, and improvement of manufacturing efficiency, our gross margin has substantially increased in the second quarter. The vehicle margin and the gross margin reached 9.7% and 8.4% respectively, far above our previous guidance of 5% and 3%.
[Foreign Speech]. We will continue to improve our gross margin, and expect