NIO Inc Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tim Hsiao - Morgan Stanley - Analyst : Hi. This is Tim from Morgan Stanley. Thanks for taking my question. I have two questions. The first question is about cost reduction effort because a lot of market focus is put on NIO's latest round of restructuring. So I just want to know that how much of cost saving would management expect to achieve? And when are we going to see the contribution emerging in upcoming quarters? That's my first question. Thank you.

Question: Tim Hsiao - Morgan Stanley - Analyst : Thank you. My second question is about ONVO. I just want to know what actions could ONVO take to regain the growth momentum? Will NIO stick to the [bounty] brand strategy, or it could potentially change ONVO to a sub-brand onto NIO to save cost and enhance efficiency? So that's my second question. Thank you.

Question: Bin Wang - Deutsche Bank - Analyst : (spoken in foreign language) My first question is about your guidance about gross margin, including vehicle gross margin and overall gross margin. Meanwhile, you mentioned that and here we are -- even in the number four quarter this year. So what's your assumption in terms of gross margin and volume? (spoken in foreign language) And my second and last question is that, previously, you guided that your 2025 volume will be double year over year. After the first quarter, can you provide an update on the volume guidance? Thank you.

Question: Paul Gong - UBS - Analyst : Hi, William. Thanks for taking my question. The AI and robotics has been a very hot topic in this early season. In one of your peers' earnings call, the AI has been mentioned 49 times during the whole call, but I guess it hasn't been mentioned here. Can you please remind us your latest thoughts on the AI, autonomous driving, robotics, et cetera?

Question: Paul Gong - UBS - Analyst : Sorry, my second question is regarding the number of models. I think the company has eight models at the same time right now. And after this year's new model launch, it will move into some mid-teens. Given the cannibalization between each other, and also one of the peers has demonstrated with even only one single model, the volume could still be achieved. Shall we consider to concentrate more into some blockbuster models and eliminate some of the less popular models to be more focused? What do you think is the most optimal number of models for each of the brands?

Question: Yuqian Ding - HSBC - Analyst : (spoken in foreign language) The first question is about cash position, supply chain perspective against that, and also potential financing. So we see our net cash position at above RMB25 billion. But given the volatility between quarters, the supply chain coming from more conservative perspective and how sustained -- would that require additional financing, no matter if it's debt or equity? Can we have a little bit more clarification on that? (spoken in foreign language) Second question is about the CapEx guidance. Can we see a little bit of breakdown into a refreshed CapEx guidance this year? We talked about a commitment into swap network. But since we signed the collaboration with CATL, can we leverage partnership to do some CapEx building? Can we expect the CapEx to taper off this year? Thank you.

Question: Ming Hsun Lee - BofA Global Research (Hong Kong) - Analyst : (spoken in foreign language) So first question is regarding your autonomous driving technology plan. When do you plan to roll out your end-to-end model? And in the future, do you consider to use the Thor chips in your car or you will use your Shenji chips in all of your NIO branded models? Thank you. That's my first question.

Question: Ming Hsun Lee - BofA Global Research (Hong Kong) - Analyst : Thank you. My next question is regarding the OpEx. Because in the past few quarters, we continue to see your gross margin continue to improve QoQ. But for the operating expense, do you have the latest guidance and a new plan? For example, in the past, William mentioned that the stabilized R&D will be RMB13 billion every year. Could you give any new update for this number? And also, for the sales and marketing expense, do you have any target ratio -- OpEx ratio for this number? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 21, 2025 / 12:00PM, NIO.N - Q4 2024 NIO Inc Earnings Call

Question: Jing Chen - CICC Investment Solutions - Analyst : (spoken in foreign language) So my question is regarding to the other sales -- other revenues. And we can see that, in the fourth quarter, the gross profit margin of other sales has already turned positive and reached 1.1%. So could you please break down the reasons for this?

Question: Tina Hou - Goldman Sachs (Asia) L.L.C. - Analyst : Thanks, management, for taking my question. I have a quick one just regarding our longer-term outlook. Say, by 2030, do we still maintain our previous, I think, volume and margin outlook? And could you please remind us of your revenue scale -- sorry, your sales volume scale target as well as your maybe overall growth margin as well as operating margin? Thank you.

Question: Tina Hou - Goldman Sachs (Asia) L.L.C. - Analyst : Thank you. Thank you, William.