NIO Inc. announced its first quarterly profit on record, reaching a significant milestone after a decade of cash burn, which boosted the company's US-listed shares. The Shanghai-based company reported on Tuesday an operating profit of 807.3 million yuan (115 million USD) for the quarter ending in December, a sharp contrast to the 6 billion yuan loss in the same period last year.
The results provided much-needed validation for the company, which has faced recurring doubts over its high capital requirements and focus on the mid-market segment amid increasingly weak demand prospects. NIO's American depositary receipts traded in New York surged 15% to $5.70. Prior to the latest earnings release, the stock had fallen about 3% this year.
Quarterly revenue increased 76% to 34.65 billion yuan, exceeding analysts' expectations. Adjusted net profit reached 726.8 million yuan. A key indicator of production efficiency and pricing power—vehicle margin—rose to 18.1% from 13.1% a year earlier.
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