Good Morning, honored guests, ladies and gentlemen. I would like to express my appreciation to Minister Njie for the kind introduction. It is a pleasure to be here today in Banjul to speak to such a distinguished audience at this moment of new possibilities for The Gambia.
You represent a true cross-section of this society—reflecting many different interests but sharing the hopes of all Gambians. These hopes found expression in the peaceful political transition of 2017. In just two days here, I am struck with admiration by the energy, determination, and patience of this nation. You have embraced your country’s challenges and opportunities, and your efforts are beginning to bear fruit. What I have sensed is a road to hope and a bright future. Or, in other words, a pathway to prosperity. This is what I would like to address in the time I have this morning.
Let me first set the stage by offering a quick overview of the economic setting in sub-Saharan Africa and The Gambia. As you know, the region has benefited from solid growth over the past two decades. But the past four years have proven more challenging. We have witnessed a divergence of economic fortunes—with diversified, well managed economies continuing to grow and many resource-dependent countries encountering difficulties.
While this pattern has continued recently, we are seeing regional growth regain some momentum. The International Monetary Fund (IMF) estimates that growth in sub-Saharan Africa should accelerate this year to 3.5 percent from 3 percent in 2018. We expect it to expand at close to 4 percent over the medium term. This is good news.
We are very pleased to see that the Gambian economy has rebounded strongly. Growth in 2018 reached 6.6 percent and prospects for sustained growth are positive over the medium term. Inflation has dropped to just above 6 percent, and gross official reserves have increased to about 3 months of imports. This remarkable progress has been achieved through your government’s efforts to stabilize the economy with support from Gambians living abroad, the private sector, and international partners.
There also has been progress in developing infrastructure, which is crucial to ensuring sustained growth. The recently opened Senegambia Bridge, which I am going to visit later today, is a prime example of this progress. It is a symbol of The Gambia’s efforts to deepen economic ties to the rest of the region.
The bridge is also a good segue to the theme of my speech: The Gambia’s pathway to prosperity. As a road, it is a pathway in the literal sense. But it is also a pathway in figurative sense, symbolizing the role of enhanced trade and connectivity in building prosperity. At the same time, domestic policy efforts will be needed to build this pathway.
Enhanced trade is one pillar of the pathway to prosperity. Africa is now moving ahead with creating the Continental Free Trade Area, which The Gambia recently endorsed. This initiative has the potential to boost intra-African trade and growth across many dimensions. It can add jobs, foster competition, help increase investment, and spur the spread of knowledge and technology. All of which could provide significant benefits to The Gambia.
The agreement itself, however, is but one step. To fully benefit from it, the significant nontariff bottlenecks to trade that exist across the region will also need to be tackled. These include infrastructure shortcomings, logistical costs, and other hurdles that hinder cross-border trade.
If these issues are addressed, regional trade integration can help maximize the returns on important public investment, such as the Senegambia bridge, and consolidate the recent pick-up in private sector activity and lending that is integral to sustainable development in The Gambia. On this point, it is important to note that this private sector-led growth needs to be supported through responsible lending by financial institutions to Gambian businesses large and small. Vigilant supervision of banks and other credit institutions will help to ensure financial stability in the face of growing private capital inflows.
Trade integration will also help frame the reforms of this country’s state-owned enterprises. In many cases, the long-term viability of those companies will depend on increasing their regional orientation.
Take the example of the energy sector. The stabilization of electricity output has contributed to your country’s stronger growth. So, the ongoing investment in the electricity transmission not only will link the Eastern and Northern parts of the country, it will also open doors to West Africa’s power networks by enabling cross-border energy trading, including under the flagship OMVG project uniting The Gambia, Guinea Conakry, Senegal, and Guinea Bissau with the aim of harnessing the water resources of The Gambia River Basin to produce low-cost renewable energy for the member countries.
In the same vein, investment to upgrade the port of Banjul could create a new trans-shipment hub for the region. Seen in this context, the Senegambia Bridge could be just one step in the development of the Trans-Gambia corridor within Economic Community of West African States (ECOWAS).
Regional integration and cooperation are particularly important for improving the structure of the economy and enhancing competitiveness. Let me offer two examples:
First, agriculture could be an important contributor to The Gambia’s pathway to prosperity. Regional trade integration and improved infrastructure will be key to growing this important sector of the economy.
On Sunday, I visited Radville Farms, outside Banjul and their processing plant and transit facility near Yundum airport. It was great to see how automation and advanced irrigation techniques are helping to produce high-value and high-yielding crops, boosting exports, and providing high-value employment for many skilled workers, especially women.
In the future, weather tracking, satellite imaging and other sophisticated technological solutions (including artificial intelligence) will be needed to modernize agriculture. They will help to create a farming sector that is more environmentally attuned and resilient to climatic shocks. This is especially important for small and fragile ecosystems like The Gambia’s. Agriculture will then be better able to meet national goals of food self-sufficiency and creation of new export markets.
Second, tourism and other services also remain essential to your future. Regarding tourism, it is great to see The Gambiaattracting record numbers of visitors. New hotels, roads, and other amenities will attract more tourists and will help rebrand your country’s tourism offerings, including by branching out into eco-tourism and water sports. The ongoing expansion of transport infrastructure will facilitate tourism, including better connections to the region. These connections, importantly, will also allow goods to move around the region and help develop trade-related services, including re-exports.
Regional economic integration and cooperation will also strengthen The Gambia’s external position. Exports, private capital inflows, and remittances from Gambians working abroad are rebounding and are likely to increase further with regional integration. This will help build foreign exchange reserves and strengthen confidence in the Dalasi.
So, there are grounds for optimism about the economic outlook. The gains we are witnessing will support your efforts to improve the quality of life for all Gambians. We are already seeing progress in the reduction of maternal and infant mortality rates, and so much more is envisaged under the National Development Plan.
This highlights that, beyond regional integration, there are other important areas of reform to move The Gambia along the pathway to prosperity, which are also key for achieving the Sustainable Development Goals. I would like to highlight three areas:
First, unlocking financial support from donors is one critical challenge. This can be addressed by resolving The Gambia’sunsustainable public debt situation. In this regard, I am pleased to report that at a recent roundtable meeting in Washington, D.C., most creditors indicated support for debt relief. Your government and its advisors are following up on this development.
Second, fostering inclusive growth and addressing social needs is another priority. This means attacking poverty through programs aimed at aiding vulnerable households and creating jobs for unemployed youth. By lowering debt service costs, debt relief can also create budget room to address these needs as well as other budget priorities, including the reform of state-owned enterprises.
Third, strengthening the rule of law and increasing accountability and transparency will also be crucial steps toward sustainable growth. The Janneh Commission revealed the extent of financial mismanagement and misappropriation during the previous regime. More focused efforts will be needed to recover stolen domestic and foreign assets.
The IMF joins the rest of the international community in applauding the governments’ commitment to transitional justice reform through the work of the Commission of Enquiry and the Truth, Reconciliation and Reparations Commission, and the recently established National Human Rights Commission. We also note the plans to establish an Anti-Corruption Commission.
We also join the international community in support of the security sector reforms, which are essential for modernizing the state and strengthening the rule of law.
To conclude, I would like to discuss the role of the IMF.
The Fund provided emergency support in 2017 and is continuing our engagement through a Staff-Monitored Program. In the future we may be able to move to a medium-term program with concessional financing.
In addition, along with international partners and supporting countries, the IMF is strongly committed to helping The Gambia strengthen key institutions, including by providing our technical expertise and training.
It is essential that the assistance of the international community, including the IMF, is closely linked to your country’s development priorities. Please be assured that we stand ready to listen to your ideas and proposals—and to provide all the help we can.
We look forward to working with you as you proceed along your pathway to prosperity.
Thank you for your time and attention. I am happy now, together with IMF colleagues, to answer any questions you may have.
SOURCE International Monetary Fund (IMF)
ProMIS Neurosciences and collaborative team receive Supercluster Award supporting avoidance of future pandemics by new strains of the COVID-19 virus
TORONTO and CAMBRIDGE, Mass., May 28, 2020 (GLOBE NEWSWIRE) — ProMIS Neurosciences, Inc. (TSX: PMN) (OTCQB: ARFXF), a company with unique core technology to predict novel targets on the molecular surface of complex proteins, together with a team of commercial and academic collaborators, have received a Digital Technology Supercluster award from the Government of Canada for 1.8 million Canadian dollars. The project, “Predicting the evolution of COVID-19,” brings together six commercial and academic collaborators to predict likely mutations of SARS-CoV-2, the virus responsible for COVID-19. The findings will inform the early design of effective tests, therapies and vaccines, allowing public health systems globally to prepare and ideally prevent future pandemics caused by evolving strains of the virus.
It is expected biologically that new strains of the virus causing COVID-19 will emerge, requiring new approaches, just as annual changes in circulating strains of influenza virus require new vaccines every year. The supercluster project, led by Terramera and including D-Wave, Menten AI, Microsoft Corp., ProMIS Neurosciences and the University of British Columbia, will predict likely mutations by combining world-class expertise in artificial intelligence, computer modelling and structural biology. ProMIS will contribute its novel technology platform, which can rapidly identify unique sites, called peptide antigens, displayed on complex protein structures, including the spike protein halo surrounding SARS-CoV-2. The data provided by the Award team will inform the design of new diagnostic and antibody tests, treatment and vaccines. The opportunity for early intelligence and planning can accelerate overall response time to the virus, improve the effectiveness of this response and potentially prevent future pandemic situations resulting from variant strains of the virus.“We’re grateful to be a part of such an accomplished team engaged in an endeavor intended to preserve human health as the novel coronavirus changes over time,” said Dr. Elliot Goldstein, president and CEO of ProMIS Neurosciences. “We thank the Government of Canada for its vision, support and commitment to innovation. We’re confident that our platform, which has created a broad portfolio of intellectual property supporting specifically tailored antibody drugs, diagnostic tools and potential vaccines, is ideally suited to support the supercluster project and help public health leaders in Canada and elsewhere prepare and ideally prevent future pandemics caused by new strains of SARS-CoV-2.”To learn more about this technology platform, please consult a recent Chairman’s Update at www.promisneurosciences.com, which is accompanied by an audio description. To learn more about the search for therapies for Alzheimer’s, Parkinson’s and other neurodegenerative diseases, listen to Saving Minds at iTunes or Spotify.The Digital Technology Supercluster announced its latest round of funded projects on May 26, 2020. To learn more about its growing suite of projects offering solutions to urgent health care needs across Canada arising from COVID-19, please visit www.digitalsupercluster.caAbout ProMIS Neurosciences
ProMIS Neurosciences, Inc. is a development stage biotechnology company focused on discovering and developing antibody therapeutics selectively targeting toxic oligomers implicated in the development and progression of neurodegenerative diseases, in particular Alzheimer’s disease (AD), amyotrophic lateral sclerosis (ALS) and Parkinson’s disease (PD). The Company’s proprietary target discovery platform is based on the use of two complementary thermodynamic, computational discovery engines – ProMIS and Collective Coordinates – to predict novel targets known as Disease Specific Epitopes on the molecular surface of misfolded proteins. Using this unique precision approach, the Company is developing novel antibody therapeutics for AD, ALS and PD. In the infectious disease setting, these disease-specific epitopes represent peptide antigens that can be used as an essential component to create accurate and sensitive serological assays to detect the presence of antibodies that arise in response to a specific infection, such as COVID-19. These peptide antigens can also be used to create potential therapeutic antibodies to treat active infection, as well as serve as the basis for development of vaccines. ProMIS is headquartered in Toronto, Ontario, with offices in Cambridge, Massachusetts. ProMIS is listed on the Toronto Stock Exchange under the symbol PMN, and on the OTCQB Venture Market under the symbol ARFXF.Visit us at www.promisneurosciences.com, follow us on Twitter and LinkedInAbout Digital Technology Supercluster
The Digital Technology Supercluster solves some of industry’s and society’s biggest problems through Canadian-made technologies. We bring together private and public sector organizations of all sizes to address challenges facing Canada’s economic sectors including healthcare, natural resources, manufacturing and transportation. Through this ‘collaborative innovation’ the Supercluster helps to drive solutions better than any single organization could on its own. The Digital Technology Supercluster is led by industry leaders such as D-Wave, Finger Food Advanced Technology Group, LifeLabs, LlamaZOO, Lululemon, MDA, Microsoft, Mosaic Forest Management, Sanctuary AI, Teck Resources Limited, TELUS, Terramera, and 1Qbit. Together, we work to position Canada as a global hub for digital innovation. A full list of Members can be found here.About the COVID-19 Program
The COVID-19 Program aims to improve the health and safety of Canadians and support Canada’s ability to address issues created by the COVID-19 outbreak. In addition, the program will build expertise and capacity to anticipate and address issues that may arise in future health crises, from healthcare to a return to work and community. More information can be found here.For media inquiries, please contact:
Tel. 617 921-0808For Investor Relations please contact:
Alpine Equity Advisors
Nicholas Rigopulos, President
Tel. 617 901-0785For Digital Technology Supercluster related media inquiries, please contact:
Tel. 587-890-9833The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company’s current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Global Smart Sensor Market (2020 to 2027) – Opportunity Analysis and Industry Forecast
Dublin, May 28, 2020 (GLOBE NEWSWIRE) — The “Smart Sensor Market by Type, and End Use: Global Opportunity Analysis and Industry Forecast, 2020-2027” report has been added to ResearchAndMarkets.com’s offering.By type, the image sensor segment generated the highest revenue in the global smart sensor market forecast in 2019.By end use, the automotive segment generated the highest revenue in the global smart sensor market share in 2019.Key Benefits
This study includes the analytical depiction of the smart sensor market forecast along with the current trends and future estimations to determine the imminent investment pockets.The report presents information regarding the key drivers, restraints, and opportunities in the smart sensor market.The smart sensor market growth is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the industry.Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
Key Topics Covered:ABB Ltd.Analog DevicesEatonHoneywellInfineon TechnologiesNXP Semiconductors N.V.Renesas ElectronicsSiemensSTMicroelectronicsTexas Instrument
For more information about this report visit https://www.researchandmarkets.com/r/ainz1wResearch and Markets also offers Custom Research services providing focused, comprehensive and tailored research.CONTACT: ResearchAndMarkets.com
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NIO Inc. Reports Unaudited First Quarter 2020 Financial Results
Quarterly Total Revenues reached RMB1,372.0 million (US$193.8 million)i
Quarterly Deliveries of the ES8 and the ES6 were 3,838 vehiclesSHANGHAI, China, May 28, 2020 (GLOBE NEWSWIRE) — NIO Inc. (“NIO” or the “Company”) (NYSE: NIO), a pioneer in China’s premium smart electric vehicle market, today announced its unaudited financial results for the quarter ended March 31, 2020.Operating Highlights for the First Quarter of 2020Deliveries of vehicles were 3,838 in the first quarter of 2020, including 3,643 ES6s and 195 ES8s, compared with 3,989 vehicles delivered in the first quarter of 2019. The decrease of the vehicle deliveries was attributed to the impact of the COVID-19 outbreak in the first quarter of 2020.
Key Operating ResultsFinancial Highlights for the First Quarter of 2020Vehicle sales were RMB1,255.6 million (US$177.3 million) in the first quarter of 2020, representing a decrease of 53.2% from the fourth quarter of 2019 and a decrease of 18.2% from the same quarter of 2019.Vehicle marginii was negative 7.4%, compared with negative 6.0% in the fourth quarter of 2019 and negative 7.2% in the same quarter of 2019.Total revenues were RMB1,372.0 million (US$193.8 million) in the first quarter of 2020, representing a decrease of 51.8% from the fourth quarter of 2019 and a decrease of 15.9% from the same quarter of 2019.Gross margin was negative 12.2%, compared with negative 8.9% in the fourth quarter of 2019 and negative 13.4% in the same quarter of 2019.Loss from operations was RMB1,570.3 million (US$221.8 million) in the first quarter of 2020, representing a decrease of 44.4% from the fourth quarter of 2019 and a decrease of 40.0% from the same quarter of 2019. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB1,537.9 million (US$217.2 million) in the first quarter of 2020, representing a decrease of 44.6% from the fourth quarter of 2019 and a decrease of 38.4 % from the same quarter of 2019.Net loss was RMB1,691.8 million (US$238.9 million) in the first quarter of 2020, representing a decrease of 40.9% from the fourth quarter of 2019 and a decrease of 35.5% from the same quarter of 2019. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB1,659.4 million (US$234.4 million) in the first quarter of 2020, representing a decrease of 41.0% from the fourth quarter of 2019 and a decrease of 33.7% from the same quarter of 2019.Net loss attributable to NIO’s ordinary shareholders was RMB1,722.8 million (US$243.3 million) in the first quarter of 2020, representing a decrease of 40.5% from the fourth quarter of 2019 and a decrease of 35.0% from the same quarter of 2019. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted net loss attributable to NIO’s ordinary shareholders (non-GAAP) was RMB1,658.9 million (US$234.3 million).Basic and diluted net loss per American Depositary Share (ADS)iii were both RMB1.66 (US$0.23) in the first quarter of 2020. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted basic and diluted net loss per ADS (non-GAAP) were both RMB1.60 (US$0.22).Cash and cash equivalents, restricted cash and short-term investment were RMB2,397.4 million (US$338.6 million) as of March 31, 2020.Key Financial Results(in RMB million, except for per
ordinary share data and percentage)Recent DevelopmentsDeliveries in April 2020Deliveries of the ES8 and ES6 were 3,155 vehicles in April 2020, representing a strong growth of 105.8% month over month and a 180.7% growth year over year. The deliveries consisted of 2,907 ES6s, the Company’s 5-seater high-performance premium smart electric SUV, and 248 ES8s, the Company’s 7-seater high-performance premium smart electric SUV and its 6-seater variant. The Company commenced deliveries of the all-new ES8 with more than 180 improvements on April 19, 2020. As of April 30, cumulative deliveries of the ES8 and the ES6 reached 38,906 vehicles, of which 6,993 were delivered in 2020.Entry into Definitive Agreements for Investments in NIO ChinaOn April 29, 2020, the Company announced that it entered into definitive agreements for investments in NIO China with a group of investors (collectively, the “Strategic Investors”) led by Hefei City Construction and Investment Holding (Group) Co., Ltd., CMG-SDIC Capital Co., Ltd., and Anhui Provincial Emerging Industry Investment Co., Ltd..
Under the definitive agreements, the Strategic Investors will invest an aggregate of RMB7 billion in cash into NIO (Anhui) Holding Ltd., the legal entity of NIO China. NIO will inject its core businesses and assets in China, including vehicle research and development, supply chain, sales and services and NIO Power (the “Asset Consideration”), into NIO China. The Asset Consideration is valued at RMB17.77 billion, as calculated based on 85% of the average market value of NIO Inc. over the thirty public trading days preceding April 21, 2020. Further, NIO will invest RMB4.26 billion in cash into NIO China. Upon the completion of the investments, NIO will hold 75.9% of controlling equity interests in NIO China, and the Strategic Investors will collectively hold the remaining 24.1%.
The Company expects the closing of the investments to take place in the second quarter of 2020, subject to the satisfaction of customary closing conditions. The Strategic Investors and NIO will each inject cash into NIO China in five installments, namely (i) RMB3.5 billion and RMB1.278 billion respectively within five business days of the satisfaction of closing conditions, (ii) RMB1.5 billion and RMB1.278 billion respectively on or prior to June 30, 2020, (iii) RMB1 billion and RMB0.852 billion respectively on or prior to September 30, 2020, (iv) RMB0.5 billion and RMB0.426 billion respectively on or prior to December 31, 2020, and (v) RMB0.5 billion and RMB0.426 billion respectively on or prior to March 31, 2021. Moreover, the Asset Consideration shall be injected into NIO China within one year of closing.
NIO China will establish its headquarters in the Hefei Economic and Technological Development Area (HETA), where the Company’s main manufacturing hub is located, for its business operation, research and development, sales and services, supply chain and manufacturing functions. NIO will collaborate with the Strategic Investors and HETA to develop NIO China’s business and to support the accelerated development of the smart electric vehicle sectors in Hefei in the future.
CEO and CFO Comments“We delivered a total of 3,838 ES8 and ES6 vehicles in the first quarter of 2020, representing a 3.8% year on year decrease, due to the impact of the COVID-19 outbreak in China in the first quarter,” said William Bin Li, founder, chairman and chief executive officer of NIO. “In April 2020, we delivered 3,155 vehicles, a robust increase of 105.8% month over month. Meanwhile, we have witnessed the order growth to have rebounded to the level prior to the COVID-19 outbreak since late April. Our strong recovery and growth were attributable to the competitiveness of our products and services, the continuous support from our user community, and the effective expansion of our sales network. We expect to deliver 9,500 to 10,000 vehicles in the second quarter, a record of quarterly deliveries since our first deliveries.”“On April 29, 2020, NIO entered into the definitive agreements with the strategic investors for the investment in NIO China. The strategic investment will provide sufficient funds to support NIO’s business development, enhance our leadership in the products and technologies of smart electric vehicles, and offer services exceeding users’ expectations. The establishment of NIO China’s headquarters in Hefei will further improve our operating efficiency in the long run,” concluded Mr. Li.“We are pleased to achieve the overall operational efficiency and cash management improvement in the first quarter of 2020,” added Wei Feng, NIO’s chief financial officer. “Our operating loss significantly decreased by approximately 44.4% quarter over quarter. While these results are partially attributable to our enhanced cost control measures taken during the COVID-19 outbreak, the improved operational efficiency reflects the initial returns of our continuous efforts in the operation optimization and expense control during the past quarters. We believe these efforts will drive positive trend of our performance in the rest of 2020 and beyond.”Financial Results for the First Quarter of 2020RevenuesTotal revenues were RMB1,372.0 million (US$193.8 million) in the first quarter of 2020, representing a decrease of 51.8% from the fourth quarter of 2019 and a decrease of 15.9% from the same quarter of 2019.Vehicle sales were RMB1,255.6 million (US$177.3 million) in the first quarter of 2020, representing a decrease of 53.2% from the fourth quarter of 2019 and a decrease of 18.2% from the same quarter of 2019. The decrease in vehicle sales of the first quarter of 2020, compared to the fourth quarter of 2019, was due to the decrease of vehicle deliveries during the COVID-19 outbreak in China. The decrease in vehicle sales of the first quarter of 2020, compared to the same quarter of 2019, was due to a higher proportion of ES6 sold in the first quarter of 2020, of which the selling price is lower than that of the ES8, which was the sole model sold in the first quarter of 2019.Other sales in the first quarter of 2020 were RMB116.4 million (US$16.4 million), representing a decrease of 29.2% from the fourth quarter of 2019 and an increase of 21.2% from the same quarter of 2019. The decrease in other sales of the first quarter of 2020, compared to the fourth quarter of 2019, was mainly attributed to decreased revenues derived from the home chargers installed and accessories sold, which were in line with the decreased vehicle sales in the first quarter of 2020.Cost of Sales and Gross MarginCost of sales in the first quarter of 2020 was RMB1,539.4 million (US$217.4 million), representing a decrease of 50.4% from the fourth quarter of 2019 and a decrease of 16.8% from the same quarter of 2019. The decrease in cost of sales compared to the fourth quarter of 2019 was mainly driven by the decrease of delivery volume of the ES6 and ES8 in the first quarter of 2020.Gross margin in the first quarter of 2020 was negative 12.2%, compared with negative 8.9% in the fourth quarter of 2019 and negative 13.4% in the same quarter of 2019. The decrease of gross margin compared to the fourth quarter of 2019 was mainly driven by the decrease of vehicle margin in the first quarter of 2020.Vehicle margin in the first quarter of 2020 was negative 7.4%, compared with negative 6.0% in the fourth quarter of 2019 and negative 7.2% in the same quarter of 2019. The decrease of vehicle margin compared to the fourth quarter of 2019 was mainly driven by the decrease of production and delivery volume of ES6 and ES8 in the first quarter of 2020.Operating Expenses
Research and development expenses in the first quarter of 2020 were RMB522.4 million (US$73.8 million), representing a decrease of 49.1% from the fourth quarter of 2019 and a decrease of 51.6% from the same quarter of 2019. Excluding share-based compensation expenses (non-GAAP), research and development expenses were RMB514.4 million (US$72.6 million), representing a decrease of 49.3% from the fourth quarter of 2019 and a decrease of 50.8% from the same quarter of 2019. The substantial decrease in research and development expenses was primarily attributed to the COVID-19 outbreak that caused the significant reduction in design and development activities.Selling, general and administrative expenses in the first quarter of 2020 were RMB848.3 million (US$119.8 million), representing a decrease of 45.1% from the fourth quarter of 2019 and a decrease of 35.7% from the same quarter of 2019. Excluding share-based compensation expenses (non-GAAP), selling, general and administrative expenses were RMB824.8 million (US$116.5 million), representing a decrease of 45.3% from the fourth quarter of 2019 and a decrease of 33.2% from the same quarter of 2019. The decrease in selling, general and administrative expenses over the fourth quarter of 2019 was primarily attributed to some one-off expenses incurred for the optimization of our sales network structure in late 2019 and the COVID-19 outbreak that caused significant decrease in marketing and promotional activities, as well as decrease of activities in business support functions in the first quarter of 2020. The decrease in selling, general and administrative expenses over the first quarter of 2019 was mainly attributed to less employee compensation due to the reduced number of employees and more efficient promotional activities during the outbreak of the COVID-19.Loss from OperationsLoss from operations was RMB1,570.3 million (US$221.8 million) in the first quarter of 2020, representing a decrease of 44.4% from the fourth quarter of 2019 and a decrease of 40.0% from the same quarter of 2019. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB1,537.9 million (US$217.2 million) in the first quarter of 2020, representing a decrease of 44.6% from the fourth quarter of 2019 and a decrease of 38.4% from the same quarter of 2019.Share-based Compensation ExpensesShare-based compensation expenses in the first quarter of 2020 were RMB32.4 million (US$4.6 million), representing a decrease of 36.8% from the fourth quarter of 2019 and a decrease of 72.9% from the same quarter of 2019. The decrease in share-based compensation expenses over the fourth quarter of 2019 was primarily attributed to the continuous decline in the number of employees, and the impact of part of the share-based compensation expenses being recognized by using the accelerated method previously.Net Loss and Earnings Per ShareNet loss was RMB1,691.8 million (US$238.9 million) in the first quarter of 2020, representing a decrease of 40.9% from the fourth quarter of 2019 and a decrease of 35.5% from the same quarter of 2019. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB1,659.4 million (US$234.4 million) in the first quarter of 2020, representing a decrease of 41.0% from the fourth quarter of 2019 and a decrease of 33.7% from the same quarter of 2019.Net loss attributable to NIO’s ordinary shareholders was RMB1,722.8 million (US$243.3 million) in the first quarter of 2020, representing a decrease of 40.5% from the fourth quarter of 2019 and a decrease of 35.0% from the same quarter of 2019. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted net loss attributable to NIO’s ordinary shareholders (non-GAAP) was RMB1,658.9 million (US$234.3 million).Basic and diluted net loss per ADS were both RMB1.66 (US$0.23) in the first quarter of 2020. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted basic and diluted net loss per ADS (non-GAAP) were both RMB1.60 (US$0.22).Balance SheetsBalance of cash and cash equivalents, restricted cash and short-term investment was RMB2,397.4 million (US$338.6 million) as of March 31, 2020. The Company operates with continuous loss and negative equity. The Company’s cash balance is not adequate to provide the required working capital and liquidity for continuous operation in the foreseeable future. The Company’s continuous operation depends on the successful implementation of the management’s plans which considers the improvements in its operating cash flows and the consummation of the Investments in NIO China. Based on its evaluation, the Company believes that its existing working capital, the funds from the Investments in NIO China and available loan facilities will be sufficient to support the Company’s continuous operations and developments in the next twelve months.Business OutlookFor the second quarter of 2020, the Company expects:Deliveries of the vehicles to be between 9,500 and 10,000 vehicles, representing an increase of approximately 147.5% to 160.6% from the first quarter of 2020, and an increase of approximately 167.4% to 181.5% from the second quarter of 2019.
Total revenues to be between RMB3,368.4 million (US$475.7 million) and RMB3,534.2 million (US$499.1 million), representing an increase of approximately 145.5% to 157.6% from the first quarter of 2020, and an increase of approximately 123.3% to 134.3% from the second quarter of 2019.This business outlook reflects the Company’s current and preliminary view on the business situation and market condition, which is subject to change.Conference CallThe Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on May 28, 2020 (8:00 PM Beijing/Hong Kong Time on May 28, 2020) to discuss financial results and answer questions from investors and analysts. Listeners may register in advance of the conference using the link provided below and dial in 10 minutes prior to the call, using participant dial-in numbers, Direct Event passcode and unique registrant ID which would be provided upon registering.http://apac.directeventreg.com/registration/event/8574289Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.nio.com.A replay of the conference call will be accessible by phone approximately two hours after the conclusion of the live call at the following numbers, until June 5, 2020 09:59 AM ET:About NIO Inc.NIO Inc. is a pioneer in China’s premium smart electric vehicle market. Founded in November 2014, NIO’s mission is to shape a joyful lifestyle by offering premium smart electric vehicles and being the best user enterprise. NIO designs, jointly manufactures, and sells smart and connected premium electric vehicles, driving innovations in next generation technologies in connectivity, autonomous driving and artificial intelligence. Redefining the user experience, NIO provides users with comprehensive, convenient and innovative charging solutions and other user-centric services. NIO began deliveries of the ES8, a 7-seater high-performance premium electric SUV in China in June 2018, and its variant, the 6-seater ES8, in March 2019. NIO officially launched the ES6, a 5-seater high-performance premium electric SUV, in December 2018 and began the first deliveries of the ES6 in June 2019. NIO officially launched the EC6, a 5-seater smart premium electric coupe SUV, in December 2019 and plans to commence deliveries in 2020.Safe Harbor StatementThis press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Among other things, quotations from management in this announcement, as well as NIO’s strategic and operational plans, contain forward-looking statements. NIO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about NIO’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: NIO’s strategies; NIO’s future business development, financial condition and results of operations; NIO’s ability to develop and manufacture a car of sufficient quality and appeal to customers on schedule and on a large scale; its ability to grow manufacturing in collaboration with partners; its ability to provide convenient charging solutions to its customers; its ability to satisfy the mandated safety standards relating to motor vehicles; its ability to secure supply of raw materials or other components used in its vehicles; its ability to secure sufficient reservations and sales of the ES8 and ES6; its ability to control costs associated with its operations; its ability to build the NIO brand; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in NIO’s filings with the SEC. All information provided in this press release is as of the date of this press release, and NIO does not undertake any obligation to update any forward-looking statement, except as required under applicable law.Non-GAAP DisclosureThe Company uses non-GAAP measures, such as adjusted cost of sales (non-GAAP), adjusted research and development expenses (non-GAAP), adjusted selling, general and administrative expenses (non-GAAP), adjusted loss from operations (non-GAAP), adjusted net loss (non-GAAP), adjusted net loss attributable to ordinary shareholders (non-GAAP), adjusted basic and diluted net loss per share (non-GAAP) and adjusted basic and diluted net loss per ADS (non-GAAP), in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.Exchange RateThis announcement contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB7.0808 to US$1.00, the noon buying rate in effect on March 31, 2020 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.Statement Regarding Preliminary Unaudited Financial InformationThe unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information.For more information, please visit: http://ir.nio.com.Contacts:NIO Inc.
Email: firstname.lastname@example.orgSource: NIO
NIO INC.Unaudited Consolidated Balance Sheets
NIO INC.Unaudited Consolidated Balance Sheets
NIO INC.Unaudited Consolidated Statements of Comprehensive Loss
Unaudited Reconciliation of GAAP and Non-GAAP Results
_____________________________________________i All translations from RMB to USD for the first quarter of 2020 were made at the rate of RMB7.0808 to US$1.00, the noon buying rate in effect on March 31, 2020 in the H.10 statistical release of the Federal Reserve Board.
ii Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of sales derived sales only.iii Each ADS represents one ordinary share.iv Except for gross margin and vehicle margin, where absolute changes instead of percentage changes are calculated.
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