NIO accelerated the launch of new brands into the mass market, and Li Bin revealed that it has formed a core team

On August 12, NIO announced its second-quarter financial report, which shows that the company's total revenue reached RMB8.448 billion during the reporting period, an increase of 127.2% year-on-year and 5.8% month-on-month, resulting in a significant increase in profit: 1.5739 billion yuan, an increase of 402.7% year-on-year, and an increase of 1.2% month-on-month. The gross profit margin of vehicle sales was 20.3%, and the consolidated gross profit margin was 18.6%.

Although NIO still had an operating loss in the second quarter, the loss margin was 763.3 million yuan, a decrease of 34.2% year-on-year, resulting in a net loss of 587.2 million yuan in the second quarter, but it has narrowed by 50.1% year-on-year.

As of now, NIO's cash reserves have reached 48.32 billion yuan, so NIO is no longer worried about cash flow, how to improve the production capacity of the whole supply chain, how to enter the mass market with a larger base, is the action that NIO is stepping up its investment at present.

Delivery of three new cars next year will further spur sales boosts

NIO's sales in the second quarter of this year remained stable, with deliveries of 21,896 units, of which ES8 was 4,433 units, ES6 was 9,935 units, and EC6 was 7,528 units, an increase of 111.9% over the second quarter of 2020 and a 9.2% increase from the first quarter of 2021, which is a new record for NIO's quarterly deliveries.

WEILAI is constrained by the production capacity of the whole supply chain, and the delivery volume has reached the upper limit, but Weilai has made plans with Jianghuai Automobile to expand production capacity. It is reported that Jianghuai Automobile will expand its annual production capacity to 240,000 units (calculated at 4,000 working hours per year) to meet the growing demand for WEILAI Automobile.

Feng Wei, Chief Financial Officer of NIO, said, "In the second quarter of 2021, NIO's quarterly deliveries hit a record high, while we achieved solid financial results, with automotive margins and gross margins reaching 20.3% and 18.6% respectively. As we expand our horizons to more markets, we will continue to invest in product and core technology development and sales and service network expansion, while improving our overall organizational efficiency and capabilities to support NIO's long-term growth. ”

Increasing the launch of new models is one of the ways for WEI TOO to enter a larger market, according to Li Bin, chairman and CEO of NIO, in addition to the ET7 that has been released and is determined to be delivered in the first quarter of 2022, NEXT YEAR WEILAI will also release two other new models based on the nt2.0 technology platform. "One of them is the lowest priced model under the Nio brand, but it's not too low." Li Bin revealed on a conference call.

The new brand enters the mass market and has established a core team

"The preparations for NIO's entry into the mass market have also been accelerated, and we will enter the mass market through a new brand, and we have now established a core team, which is an important step." Li Bin disclosed the progress of the new brand.

Previously, some media reported that Ai Tiecheng, former general manager of WeWork Greater China, has joined WEILAI as vice president of strategic new brand business, led by him to create a new brand for Weilai to enter the mass market, and the product positioning of the new brand is between 150,000 and 250,000 yuan. The news was not confirmed by Weilai.

To be sure, the new brand and the nio brand are independent, including sales networks and apps.

"We're not going to get into the product range of The Wuling Hongguang Mini EV because they've been very successful." For the news that the new brand of Weilai will launch a micro-electric vehicle in the price range of 30,000 yuan, Li Bin directly denied it.

At the same time, Li Bin said, "The relationship between the NIO brand and the new mass market brand is similar to that between Audi and Volkswagen, lexus and Toyota. We want to offer better products and services at a lower price than Tesla. ”

This article originated from Blue Whale Finance