[Management View]
NIO delivered 42,094 smart EVs in Q1 2025, up 4.1% YoY. The company emphasized strategic cost reductions and efficiency improvements, including the integration of in-house developed chips and the new SkyOS operating system. The transition to an inventory-based sales model aims to meet heightened consumer demand for immediate delivery.

[Outlook]
NIO expects Q2 deliveries to be between 72,000 and 75,000 units, with a vehicle margin target of around 15% for the NIO brand. The company plans to launch the flagship Anguo L90 SUV and expand Firefly brand deliveries in Q3 2025. The third manufacturing facility is scheduled to begin operations in September 2025 to support projected Q4 2025 delivery targets.

[Financial Performance]
- Total revenues: 12,000,000,000 RMB, up 21.5% YoY, down 38.9% QoQ
- Vehicle sales: 9,900,000,000 RMB, up 18.6% YoY, down 43.1% QoQ
- Other sales: 2,100,000,000 RMB, up 37.2% YoY, down 5.9% QoQ
- Vehicle margin: 10.2%, up from 9.2% YoY, down from 13.1% QoQ
- Overall gross margin: 7.6%, up from 4.9% YoY, down from 11.7% QoQ
- R&D expenses: 3,200,000,000 RMB, up 11.1% YoY, down 12.5% QoQ
- SG&A expenses: 4,400,000,000 RMB, up 46.8% YoY, down 9.8% QoQ
- Operating loss: 6,400,000,000 RMB, up 19% YoY, up 6.4% QoQ
- Net loss: 6,800,000,000 RMB, up 30.2% YoY, down 5.1% QoQ

[Q&A Highlights]
Question 1: Did the new model launches impact Q2 sales volume guidance?
Answer: NIO expects to deliver around 25,000 to 28,000 units in June. The new ES6, EC6, ET5, and ET5T models, launched in late May, will experience their first full delivery month in June. The actual price increase for these models is around 10% from the previous generation, with a vehicle gross margin improvement of more than 10%.

Question 2: What are the expected contributions from cost reduction measures?
Answer: NIO has implemented cost control and efficiency improvement measures since March. The company aims for a 15% reduction in R&D spending in Q2 and a 20-25% year-over-year reduction by Q4 2025. SG&A expenses are targeted to be within 10% of sales revenue by Q4.

Question 3: What is the feedback on the new NWM-based smart driving version?
Answer: The NWM-based version has been well-received, providing significant improvements in active safety and driving experience. The new models equipped with the in-house developed smart driving chip NX1931 will see further enhancements in late June.

Question 4: What are the strategies for enhancing Anguo brand sales?
Answer: NIO has made organizational and operational adjustments to the Anguo brand, including changes to the management and sales teams. The company aims to improve operating efficiency and productivity, with a target of more than 10,000 units per month for the Anguo L60.

Question 5: Can NIO achieve margin expansion in Q2?
Answer: NIO expects the vehicle gross margin for the NIO brand to improve to around 15% in Q2, driven by higher average selling prices and cost reductions from in-house developed chips. The overall gross margin is expected to return to double digits.

Question 6: What are the assumptions for Q4 breakeven?
Answer: NIO targets a combined monthly delivery of 50,000 units between the NIO and Anguo brands, with a vehicle gross margin of 17-18%, SG&A expenses within 10% of sales revenue, and R&D expenses controlled at 2-2.5 billion RMB per quarter.

Question 7: What is the market feedback on the new ES6 and EC6 models?
Answer: The new ES6 and EC6 models have received positive feedback for their improved product competitiveness. NIO does not plan to upgrade these models to a 900-volt architecture in the short term.

Question 8: How will NIO manage its channel network?
Answer: NIO will keep the point of sale for the NIO and Anguo brands separate but will integrate mid and back-end operations for better efficiency. The company is also piloting the use of power swap stations as points of sale in certain regions.

Question 9: What are the expectations for the Anguo L90 and L80 models?
Answer: The Anguo L90 and L80 models are expected to be game changers in the large SUV segment, with innovative design and low energy consumption. NIO targets a monthly delivery of 25,000 units for the Anguo brand by Q4.

Question 10: How will NIO manage cash flow and working capital?
Answer: NIO expects operating cash flow to improve with higher sales volumes in Q2 and beyond. The company aims to achieve positive free cash flow for the full year 2025 and will continue to control OpEx and CapEx tightly.

[Sentiment Analysis]
Analysts were generally positive about NIO's strategic cost reductions and new model launches. Management maintained a confident tone, emphasizing efficiency improvements and long-term growth potential.

[Quarterly Comparison]
| Metric | Q1 2025 | Q4 2024 | YoY Change | QoQ Change |
|-------------------------|------------------|------------------|------------------|------------------|
| Total Revenues | 12,000,000,000 | 19,600,000,000 | +21.5% | -38.9% |
| Vehicle Sales | 9,900,000,000 | 17,400,000,000 | +18.6% | -43.1% |
| Other Sales | 2,100,000,000 | 2,230,000,000 | +37.2% | -5.9% |
| Vehicle Margin | 10.2% | 13.1% | +1.0% | -2.9% |
| Overall Gross Margin | 7.6% | 11.7% | +2.7% | -4.1% |
| R&D Expenses | 3,200,000,000 | 3,660,000,000 | +11.1% | -12.5% |
| SG&A Expenses | 4,400,000,000 | 4,880,000,000 | +46.8% | -9.8% |
| Operating Loss | 6,400,000,000 | 6,020,000,000 | +19.0% | +6.4% |
| Net Loss | 6,800,000,000 | 7,170,000,000 | +30.2% | -5.1% |

[Risks and Concerns]
- Lowering cash position due to seasonality and capital expenses
- Higher inventory levels and working capital requirements
- Competitive market environment impacting sales and margins

[Final Takeaway]
NIO's Q1 2025 earnings call highlighted the company's strategic focus on cost reductions, efficiency improvements, and new model launches. Despite a challenging quarter with lower revenues and higher losses, NIO remains confident in its ability to achieve significant growth and margin improvements in the coming quarters. The company's transition to an inventory-based sales model and the integration of in-house developed technologies are expected to drive long-term success. Investors should monitor NIO's progress in achieving its Q4 breakeven target and the impact of new product launches on overall performance.