Nio extends adjusted operating-profit streak as product mix lifts margins

Key Points:

• Nio reported an adjusted operating profit of 206.9 million yuan in Q2, more than tripling the first quarter's 66.8 million yuan, marking its third consecutive quarter of adjusted operating profit.
• The company's Q2 revenue rose 69.1% year-on-year to 32.14 billion yuan, driven by increased deliveries and a higher proportion of premium models, though it fell slightly short of the lower end of its guidance.
• Vehicle deliveries reached 107,658 units in Q2, up 49.4% year-on-year but below the guided range of 110,000 to 115,000 units, with vehicle sales revenue rising 80.1% year-on-year to 29.06 billion yuan.
• Nio's GAAP net loss narrowed significantly to 528 million yuan in Q2 from nearly 5 billion yuan a year earlier, despite being wider than the previous quarter, while adjusted net profit excluding share-based compensation decreased to 26.1 million yuan.
• The company expects Q3 vehicle deliveries between 108,000 and 111,000 units, with revenue forecasted to grow 52.7% to 56.2% year-on-year, supported by continued sales growth across all three of its brands.