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By ZHOU Shuqi

Following months of weak sales, EV maker Nio’s Q2 performance was even worse than Q1.

Chinese EV maker Nio has released its Q2 report, revealing revenue for the quarter of 8.8 billion yuan (about US$1.2 billion), falling short of the market’s expected 9.3 billion yuan and a 14.8-percent year-on-year drop. The decline was even more pronounced compared to Q1, with a nearly 20 percent decrease.

In terms of sales, Nio faced the direct impact of upgrade missteps in April and May. Consequently, Q2 sales were down 24.2 percent from Q1 and the lowest single-quarter sales for two years.

With revenue dwindling and R&D costs expanding, Nio’s gross profit for Q2 amounted to just 87 million yuan, half of Q1"s already weak number and representing a 1-percent gross profit margin – pretty poor compared to the 13 percent seen this time last year.

Nio’s net loss hit 6 billion yuan in Q2, more than double last year"s. Cash reserves are at 31.5 billion yuan, 6.3 billion yuan down on Q1.

CEO LI Bin plans to delay fixed asset investments and new R&D while focusing on European markets. Li is optimistic that cash flow will improve in Q3, and is aware that any missteps could trigger another crisis.