一

Li Bin may feel depressed.

NIO Inc., who finally got out of the trough in 2019, handed over a bright financial report in 2020Q2, but did not receive positive feedback from the market.

This is the best financial report that NIO Inc. has handed over since he went public. LiBin realized that he was in3In the "promise" six months ago, the gross profit margin turned positive for the first time, the quarterly delivery volume exceeded 10,000 units for the first time, and the loss narrowed at the same time.

Market sentiment is so high that NIO Inc. 's shares rose more than 7 per cent before the US stock market opened, and even exceeded 8 per cent at the start of trading. But soon, NIO Inc. 's share price fell sharply, all the way down. By the close, NIO Inc. 's share price had fallen 8.59% to close at US $12.99.

In the past year, NIO Inc. has experienced a low ebb and tenaciously stepped out of the trough. Last year, the shadow of car recalls and layoffs was temporarily lifted, and ES6 began to take the lead. It also received 7 billion yuan of support from Hefei, which can temporarily ease the pressure on funds. NIO Inc. 's share price approached $16 in early July and has risen more than 300 per cent this year.

Li Bin became busy with the naked eye, and he gave more and more interviews to the media to talk about strategy and market. Last month, in Chengdu, he released NIO Inc. 's third production model, the NIO Inc. EC6, a positioning sedan SUV, which is expected to be delivered in late September. It is reported that NIO Inc. is likely to release a new model, the ET car, at this year's NIO Day.

During the earnings call, Li Bin predicted that NIO Inc. 's delivery volume would reach 11000 to 11500 vehicles in the Q3 quarter. He also said that both NIO Inc. 's vehicle gross profit margin and comprehensive gross profit margin will exceed 10 per cent in the second half of this year.

But the market's doubts about NIO Inc. never seem to be dispelled. It is not only the forerunner of the power of new car-building in China, but also the one who is ridiculed. After several rounds of financing in the first half of the year, NIO Inc. now has a capital of 11.2 billion yuan, which can temporarily get rid of the problem of lack of money-but only temporarily. NIO Inc. is still losing money, which means he still needs continuous blood transfusions.

EC6, which Li Bin has high hopes for in the second half of the year, is only a small modification of ES6 and faces direct competition from Tesla, Inc. Model Y, which will have a lower price and stronger brand appeal.

The share price of the roller coaster also reflects this point. Li Bin and NIO Inc. Automobile, which he leads, still need more achievements to prove themselves.

二

Long before the release of NIO Inc. 's Q2 results, there were psychological expectations in the market. Q2 quarter delivery volume was made public early, exceeding 10,000 vehicles for the first time. July delivery reached 3533 vehicles, the second highest monthly delivery volume for the company. Li Bin also announced in the Q1 quarter earnings conference call that the company's automobile business gross profit margin Q2 will reach 5%, the overall gross profit margin will reach 3%.

But the Q2 results still surprised the market. The gross profit margin of NIO Inc. 's auto business reached 9.7 per cent, compared with minus 24.1 per cent in the same period last year and minus 7.4 per cent in the previous quarter. The company's overall gross profit margin also reached 8%, far exceeding the 3% target set by Li Bin. Previously, Bloomberg unanimously expected a forecast of only 2.98%.

Li Bin proudly said on the earnings call that the increase in gross profit margin was due to the strong momentum of quarterly delivery, the average selling price of vehicles, the reduction in the cost of battery packs and other BOM, and the improvement in manufacturing efficiency.

This is the first time in NIO Inc. 's history that his gross profit margin has become a regular employee, with a gross profit margin of 313.1 million yuan.Excluding R & D and sales costs means that NIO Inc. has seen a profit hole.——It is no longer a completely lossmaking business.

But building cars has always been a costly business, and it took Tesla, Inc. decades to make a profit. For Xilai, profits seem even more distant. What the media like to talk about is that NIO Inc. lost 40 billion yuan in 4 years, while Tesla, Inc. lost so much in 15 years. Although Li Bin once explained to the public that excluding R & D, the loss was only 22 billion.

After the tragedy of last year, NIO Inc. tried to change his habit of being profligate.Enter2020Since the beginning of 2008, NIO Inc. 's R & D expenditure and sales management expenditure have shrunk sharply compared with last year, and become more and more stable.In the current quarter, R & D expenses decreased by 58.1% compared with the same period last year, and sales, general and management expenses decreased by 34.1% compared with the same period last year. Li Bin said on the earnings call that he hopes to limit the annual R & D investment to about 3 billion yuan.

With the decrease in expenditure, the delivery volume of NIO Inc. 's car has increased steadily. As of July this year, the delivery volume of NIO Inc. 's cars had reached 17702, exceeding 3000 for four consecutive months. According to Li Bin's forecast of 11000 to 11500 vehicles in Q3, it is no longer a problem for NIO Inc. to deliver more than 20, 000 vehicles this year. NIO Inc. Automobile has initially stepped out of the first difficult problem of the new power of car-building, and the delivery volume has climbed steadily. However, compared with Tesla, Inc. 's domestic sales volume of more than 10,000 a month, NIO Inc. still has a big gap.

The new delivery volume of Q2 pushed NIO Inc. 's quarterly revenue to a new high of 3.72 billion yuan, an increase of 146.5% over the same period last year and 171.1% over Q1. The operating loss in the quarter narrowed to 1.16 billion yuan, down 64% from the same period last year and 26.1% from Q1.

Everything seems to be getting better. "Q2 2020 will be a landmark quarter for us," Li Bin said happily. Except for NIO Inc. 's falling share price all the way after the conference call.

三

For a long time, NIO Inc. Automobile has been a controversial existence in the domestic public opinion field. Even compared with other new car-building forces, people's views on NIO Inc. are more complicated.

It is the first of the only three new car-building forces left to deliver, the first to go public, the highest amount of financing, and the most high-profile one. Li Bin applied the marketing techniques he learned from the media to NIO Inc..

NIO Inc. held its first press conference at the Wukesong Gymnasium in Beijing. There are rumors that Li Bin contracted the surrounding five-star hotels for the national media, but also chartered a special train to pull people into Beijing. NIO Inc. 's first flagship store, NIO House, is located at 1 Dongchang'an Street, next to Wangfujing. At ordinary times, this is still the base area of NIO Inc. car owners.

This makes NIO Inc. gain two completely different kinds of evaluation in the market. Li Bin has done the best service to the car owners. With one click of the power-up service, NIO Inc. 's staff came to recharge in a nanny car after a phone call. Even in the early years, NIO Inc. car owners went to Xinjiang to play, NIO Inc. also took out the car to pull the charging car operation.

Most owners of NIO Inc. cars have a high degree of loyalty to the brand, but in the market, they often leave the impression that they are spending money.

Li Bin has already lost 40 billion yuan, and this number will continue to rise in the future. Fortunately, Li Bin always found money, and after the 10 billion investment of Yizhuang Guotou aborted, Hefei gave him a blood transfusion of 7 billion yuan, and six banks provided a comprehensive credit of 10.4 billion yuan to NIO Inc. China. NIO Inc. also took the opportunity to issue 72 million additional ADS shares, raising a total of $430 million (about 3 billion yuan).

In the Q2 financial report, NIO Inc. revealed that NIO Inc. 's capital injection of 5 billion yuan in the first two phases of China has been completed. At present, NIO Inc. has 11.2 billion yuan in cash and cash equivalents. NIO Inc. said in the financial report, "the existing working capital, investment funds from NIO Inc. China, and available loan lines will be sufficient to support the company's continued operation and development in the next 12 months."

"Let's start withICUOver to the general ward. "Li Bin said. NIO Inc. was attending the 12th China Automobile Blue Book Forum in Wuhan in the afternoon when he released the Q2 financial report. He seemed to be in a good mood and boldly predicted at the meeting that brands such as Apple Inc and Tesla, Inc. would become the leaders of high-end luxury models.

Of course, it also includes NIO Inc..