NIO Inc. (NYSE:NIO) Q4 2023 Earnings Conference Call March 5, 2024 7:00 AM ET

Company Participants

Rui Chen - Head of IR

William Li - Founder, Chairman and CEO

Steven Feng - CFO

Stanley Qu - SVP of Finance

Conference Call Participants

Tim Hsiao - Morgan Stanley

Ben Wang - Deutsche Bank

Yuqian Ding - HSBC

Ming-Hsun Lee - Bank of America Merrill Lynch

Paul Gong - UBS

Cheng Jing - CICC

Tina Hou - Goldman Sachs

Operator

Hello, ladies and gentlemen, thank you for standing by for NIO Incorporated Fourth Quarter and Full Year 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. Today's conference call is being recorded.

I will now turn the call over to your host, Mr. Rui Chen, Head of Investor Relations of the Company. Please go ahead, Rui.

Rui Chen

Good morning and good evening, everyone. Welcome to NIO's fourth quarter and full year 2023 earnings conference call. The company's financial and operating results were published in the press release earlier today and are posted on the company's IR website. On today's call, we have Mr. William Li, Founder, Chairman of the Board and the CEO; Mr. Steven Feng, CFO; and Mr. Stanley Qu, Senior VP of Finance.

Before we continue, please be kindly reminded that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. 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 U.S. Securities and Exchange Commission, the Stock Exchange of Hong Kong Limited, and the Singapore Exchange Securities Trading Limited. 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 the 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 measures to comparable GAAP measures.

With that, I will now turn the call over to our CEO, Mr. William Li. William, please go ahead.

William Li

Hello, everyone. Thank you for joining NIO's 2023 Q4 and full year earnings call. In Q4 of 2023 NIO delivered a total of 50,045 premium smart EVs, up 25% year-over-year. In 2023, NIO's cumulative delivery reached 160,038 units, representing our goals above 30.7% from 2022. In January and February of 2024 due to the seasonality of industry and the Chinese New Year, NIO delivered 18,187 vehicles. On March 7, NIO will start to deliver for the 2024 model, featuring enhance the performance and experience, with that, NIO's will gradually bounce back, and the total delivery in Q1 is expected to be between 31,000 to 33,000 units. In terms of NIO's financial performance, with continuous improvements on the bond [ph] costs, the vehicle gross margin increased to 11.9% in Q4.