Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

LATEST
Platform Serving China’s Takeout Delivery Workers Jumps 28% in Nasdaq Debut
SenseTime Builds AI Computing Platform in Shanghai Amid ‘New Infrastructure’ Push
WeRide to Test Fully Autonomous Vehicles in Guangzhou
Trending in China: Why Are Chinese Netizens Saying Kanye West Could be ‘China’s First’ U.S. President?
Trending in China: Will Weibo’s Fight Against Porn Have Other Unintended Side Effects
Tencent Leads $40 Million Investment in Online Art Educator
Alibaba Aims to Facilitate $1.4 Trillion in Sales Annually By 2024
Trending in China: Death of Giant Panda Cubs Sparks Concerns About Treatment of ‘National Treasure’
China CFO of Indian Oyo Quits to ‘Pursue Other Professional Opportunities’
Sequoia Capital Opens Its First Tech Incubation Center in Shanghai
Some 266 Foreign-Invested Firms Approved to Offer Telecom Services in China in First Half of 2020
Trending in China: Should Internet Celebrities Be Part of the School Curriculum?
Sequoia China Leads Nearly $100m Round in Storytelling App Kuaidian
Medical Robot Maker Finds Elixir in STAR Board’s Market Reforms
Trending in China: Outrage Ensues as Updated U.S. Student Visa Policies Force International Students into a Dilemma
Tencent’s PUBG Mobile Game Hits $3 Billion Milestone
Luckin Coffee Shareholders Vote to Remove Chairman, Bloomberg Reports
France Won’t Ban But Will Discourage Use of Huawei 5G Equipment, Official Says
Trending in China: ‘Lipstick King’ Li Jiaqi Settles in Shanghai, Prompting a Rethink of ‘Talent’
Tencent Plays in U.S. With California Game Studio Launch
Embattled Nio Emphasizes Importance of Layoffs in Delayed Investor Call

By Simin Wen / Sep 26, 2019 07:15 PM / Business & Tech

Photo: VCG

Photo: VCG

There has been plenty of drama at Nio this week as the besieged carmaker once dubbed “China’s Tesla” abruptly canceled a planned Tuesday teleconference with investors after announcing heavy second-quarter net losses.

On Tuesday, Nio said its net loss during this year’s second quarter totaled 3.3 billion yuan ($462 million). The figure was 25% wider than the previous quarter and worse than a 2.6 billion yuan loss expected by the market. Investors got a further surprise when minutes after the results release, Nio announced it was canceling its regular earnings conference call without specifying a reason. The decision exacerbated investors’ concerns and the company’s New York-listed stock plunged.

The call eventually took place Wednesday before market open with executives emphasizing the company’s competitiveness and actions it would take to boost its position. CEO William Li said during the call that the company had made cumulative losses of 22 billion yuan since its inception four years ago, a figure lower than the $5 billion reported by Bloomberg earlier this week.

Li further explained that the shortfall was partly due to paying preferred stock dividends to some investors, and partly due to an outlay of 10 billion yuan on research and development.

Staff cuts will be key to reversing Nio’s fortunes, CFO Xie Dongying said. Caixin previously reported some 2,000 of the company’s approximately 9,000 employees are potentially facing the sack.

The conference did little to restore investor confidence, with Nio’s stock dropping 5.5% after the call to $2.05. The shares now trade at less than a third of their price from their New York IPO a year ago.

Related: ‘Tesla of China’ Sputters a Year After IPO

Share this article
Open WeChat and scan the QR code