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NIO Li Bin: NIO has incurred losses in research and development, and has made efforts in three aspects to achieve sustained and steady sales growth

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Chongqing, June 8th (Reporter Wang Lin) - The 2024 China Automotive Chongqing Forum was held in the mountainous city of Chongqing. Li Bin, Chairman and CEO of NIO, responded at the forum, "Where is NIO losing money?" It was particularly simple, losing money in research and development and infrastructure investment. Li Bin stated that no matter how difficult it is in terms of research and development investment, NIO still maintains a quarterly investment of 3 billion to 4 billion yuan.
But Li Bin believes that the success of NIO products comes from research and development technology, and that NIO's product competitiveness comes from the aggregation of full stack technology research and development, so the final product competitiveness comes from the competitiveness of technology.
On the evening of June 6th, NIO released its financial report for the first quarter of this year, with a revenue of 9.908 billion yuan, a year-on-year decrease of 7.2% and a month on month decrease of 42.1%; The net loss was 5.184 billion yuan, an increase of 9.4% year-on-year and a decrease of 3.4% month on month; The gross profit margin of the entire vehicle was 9.2%, an increase of 4.1 percentage points year-on-year and a decrease of 2.7 percentage points month on month.
At the same time, according to the latest delivery volume data released by NIO on June 1st, NIO delivered 20544 new cars in May, a year-on-year increase of 233.8% and a month on month increase of 31.5%, setting a new historical high; From January to May this year, NIO delivered 66217 new cars, a year-on-year increase of 51%.
Li Bin also talked about how to achieve sustained and steady sales growth. "On the one hand, we need to increase the coverage of the charging and swapping network, because most of NIO's cars are still sold in first - and second tier cities. In third - and fourth tier cities, it is a disadvantage in terms of reputation and infrastructure network, and we still need to strengthen our weaknesses. Secondly, for NIO, we need to leverage our existing capabilities, such as intelligence and hardware, and accelerate software iteration. Thirdly, we need to be more proactive in communicating with users, relying on their reputation to improve product quality, and truly 'break through boundaries'," said Li Bin.
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