Nio Stock Surges in Early Hong Kong Trade After Beating Profit and Delivery Forecasts

As trading on the Hong Kong stock market resumed today following a suspension on Friday due to a typhoon, Nio jumped in early trade today after exceeding second-quarter profit projections. Nio saw its largest intraday increase since May 2 at press time, up 3.51% to $5.02.

Before the US stock market opened last Thursday, Nio released better-than-expected second-quarter results and provided optimistic projections for third-quarter deliveries. Nio’s performance in the US market, where its American Depository Shares, which are used to produce electric vehicles (EVs), increased 14.39 percent last Thursday and 3.51 percent on Friday, followed by the increase.

Nio Exceeds Q2 Revenue Projections with RMB 17.446 Billion, Up 98.89% Year Over Year

Analysts had predicted RMB 17.385 billion in revenue for Nio‘s second quarter, but the company actually made RMB 17.446 billion ($2.4 billion). This exceeded the higher end of the projected range of RMB 16.59 billion to RMB 17.14 billion and was up 98.89 percent year over year and 76.07 percent from the first quarter.

In the second quarter, the company posted a net loss of RMB 5.05 billion, a decrease of 2.7% from the first quarter and 16.7% year over year. It reported a second-quarter gross margin of 9.7%, which was higher than experts’ projected 8.736 percent and the highest since the third quarter of 2022. In the second quarter of 2023, it was 1.0 percent, and in the first quarter of 2024, it was 4.9 percent. Nio predicted that record-breaking third-quarter car deliveries would range from 61,000 to 63,000 units, indicating a growth of roughly 10% to 13.7% on an annual basis.

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