According to the evening news of Nov. 6, Beijing time, Sina Technological News, NYSE: NIO today released its third quarter financial report for the fiscal year ended Sept. 30, 2008, with a total revenue of 1.469.6 billion yuan ($214 billion), an increase of 3095.3% over the previous year. The net loss was 2 billion 810 million 400 thousand yuan (US $409 million 200 thousand) and the annulus ratio was 56.6%. Based on non-GAAP, the net loss was RMB 2,378.2 billion yuan ($346.3 million), an increase of 37.4% over the previous year.
After the release of the financial report, the founder, chairman, CEO Li Bin, CFO Xie Dongfu and Vice President of Finance Wang Dongning attended the subsequent telephone conference, interpreted the financial report and answered the analyst's questions.
Wolf Research analyst Dan Galves: what is the company's orders in the past few months? What's the popularity and brand awareness of Wei Lai automobile? What will the company do to improve the brand awareness of the company?
Xie Donghong: The order situation is relatively stable. I know you mean the number of vehicles that have not yet been delivered. We have delivered 53 vehicles so far, and we expect to deliver 2,500 vehicles a month in November and December, reaching the target of 10,000 vehicles. The number of orders received per day is 50-80, sometimes 100. Users need to pay a deposit of 5,000 yuan for each order. If production starts, users need to increase the deposit to 45,000 yuan. The number of vehicles that has already been placed before orders has not yet been delivered. There are 5000 vehicles. At present, the demand for orders is relatively strong, the company does not have direct marketing activities, but we are gradually increasing the number of stores, which is the strategy we mentioned before. In the past month or two, there are 12 stores and many customers patronize. Our App has 626,000 active users.
Li Bin: Our user base is gradually expanding. By the end of October, our App alone had 626,000 users and 170,000 active users. It seems that our brand is known by more and more people. Our delivery is also stepping into the process. Recently, we will gradually expand new users through the introduction of old users, situational test driving and more convenient test driving. At present, users are very welcome to these ways.
We now introduce users in a very useful way, for example, we have a user in Wenzhou, a user introduced more than 10 paid deposit users, so our confidence in word-of-mouth communication is very strong.
Dan Galves: what are the specific plans for the company to achieve gross profit margin in the next quarter?
Wang Dongning: Speaking of gross profit rate, there are two factors to be considered. One is raw material cost, the other is fixed cost. The company expects that both costs will decrease in the fourth quarter because of scale effect and better supply chain cost control.
Xie Donghong: We expect the gross margin to improve. At the same time, if we can reach the delivery target of 7000 vehicles, the profit margin of each vehicle can be corrected in the fourth quarter. (Tian Heng)
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