Weilai financial report meeting summary: the new model will be benchmarked against Model Y, and the two sub-brands are coming soon

In the past Q3, Weilai ES7 and ET5 were officially delivered, and Qin Lihong was also full of confidence in the performance of ET5, and even said during the Chengdu Auto Show, "For a more intuitive understanding, in the past year, the sales volume of the BMW 3 Series in a normal month is about Between 12,000 and 15,000. The goal of NIO ET5 is to exceed it within the next year.”

On November 10, Weilai released its financial report for the third quarter of 2022. The data showed that Q3 revenue was 13.0021 billion yuan, a year-on-year increase of 32.6%, and higher than market expectations.

The gross profit margin of vehicle sales was 16.4% , compared with 16.7% in Q2 of 2022, a slight decrease from the previous quarter; the net loss was 4.1108 billion yuan , compared with a loss of 2.86 billion yuan in the same period last year.

The financial report data shows that NIO currently has a cash reserve of 51.4 billion yuan, but in the face of expanding losses, many people will have questions about whether NIO has a future?

Weilai CEO Li Bin revealed in an interview with German media in October that "compared to Tesla, Weilai will take a shorter time to achieve profitability." On this Q3 earnings call, Li Bin believes that "2023 In Q4 of this year, the NIO brand can achieve breakeven."

In addition, Li Bin also revealed a lot of interesting news on the conference call, and I will explain it to you in conjunction with the data of this financial report.

Deliveries announced in the next two months will be exciting

The financial report shows that Weilai's delivery guidance for Q4 in 2022 is 43,000-48,000 units, the highest delivery guidance for a single quarter.

In the past 10 months, the delivery volume was 10,059, which means that Weilai will deliver an average of 16,000 vehicles in November and December to complete the target.

Weilai revealed that the epidemic has affected the production capacity of ET5. The electric drive system of ET5 comes from a new factory. The epidemic has affected the production capacity for more than a week. In November, a new electric drive system production line will be added, and the supply of subframes will be basically resolved in November. December ET5 will meet the climbing expectations.

Li Bin believes that the demand for ET5 is in line with expectations. Because of the inconsistency in the price range, Tesla's price reduction has no impact on NIO's demand.

Interestingly, someone asked Weilai how to view the high energy consumption of online ET5 in the conference call. Li Bin reminds everyone to look carefully at the tire options when purchasing. The energy consumption of 20-inch wheels will be higher.

He also said that we are very confident about the ET5 compared to the BMW 3 Series.

R & D expenditure increased by 37% month-on-month, Li Bin is very calm

At present, the technology/product development progress announced by NIO has been delayed to a certain extent, such as the NOP Plus originally launched in Q3, and the 150-degree battery pack originally delivered in Q4 are all being delayed.

In addition, NIO previously announced a self-research plan for batteries to achieve self-research on three electric devices, and the sub-brand Alps will adopt the new NT3.0 platform. The above-mentioned technologies/products that are being promoted and will be promoted are all occupying a large amount of research and development resources.

Q3 R&D expenditure was RMB 2.94 billion, a quarter-on-quarter increase of 37%, a new high in a single quarter. Faced with the increase in R&D expenditure, Li Bin is very calm and thinks it is expected:

In the next period of time, each quarter's research and development expenses will remain at around 3 billion yuan, and the systematic efficiency of research and development will continue to be improved. The increase in R&D expenses in Q3 is planned.

In the first half of next year, 5 models will be launched, waiting to be compared to the Model Y

Regarding the new car plan, Li Bin revealed a big news on the earnings call:
"We will launch 5 models in the first half of next year, and one of them will always be Weilai's Model Y." "By June next year, we will have 8 models on sale to meet the diverse needs of users."
Among these five models, according to the existing external information and trademark patent declarations, there may be ES5, EC7, new ES8 and so on.

The benchmark Model Y model, if nothing else, is the ES5. Li Bin also added that there is no MPV for the time being.

In 2023, Q4 will achieve breakeven and reveal the secrets of sub-brands

On November 11, Li Xiang once said on Weibo, "Ideal L9 and Ideal L8 together meet the needs of home users with a price range of 300,000 to 500,000! We strive to achieve a monthly income of over 10 billion in 2022. The two products were delivered at the same time." It’s time, and it’s time to say goodbye to seven consecutive years of loss-making operations.”

So when is Weilai's profit turning point? Li Bin believes that in Q4 of 2023, the NIO brand can achieve breakeven.

Due to the battery price, the price of lithium carbonate hit a new high. Li Bin believes that it will affect the gross profit of Q4, but he does not expect to increase the price again, but he is confident that the gross profit of Q4 will be stable.

In addition, Li Bin also revealed that "the investment in R&D of the two new brands, new businesses such as batteries, chips, and mobile phones is about 1 billion yuan a quarter, and a total investment of 3 billion to 4 billion yuan a year."

Dong Che will draw the key points for everyone. According to outside sources, besides Alps, the two sub-brands also have Firefly.

From this point of view, the story of Weilai can still be told for a long time.

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