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在线翻译:
szdaily -> Markets -> 
NIO CEO pledges improvement in finances
    2019-12-31  08:53    Shenzhen Daily

THE CEO of NIO Inc. pledged an improvement in the struggling Chinese electric-car maker’s finances as demand picks up and the company’s cost-cutting efforts start to bear fruit.

NIO’s sport utility vehicles (SUVs) will be competitive not just against other electric models, but all premium cars in the same price range, said William Li, NIO’s co-founder and CEO. Meanwhile expense reductions will help NIO’s gross margin to widen in 2020, Li said.

“I am very confident of our products’ competitiveness,” Li said in Shenzhen on Sunday. “There are many concerns in the market, but our sales are real.”

NIO has accumulated a deficit of almost US$6 billion since its founding in 2014, spending extensively on marketing and product development for a foothold in the burgeoning market. Third-quarter earnings are expected to show there’s still a long way to profitability.

While NIO has cut jobs and started to scale back marketing expenditures, its finances remain critically strained. China’s electric-car market is slowing as the government reduces subsidies, and competition is getting tougher with Tesla Inc. yesterday starting deliveries of its first China-built Model 3 sedans.

“NIO’s balance sheet implies serious liquidity risk,” said Robin Zhu, an analyst at Sanford C. Bernstein. “The key will be whether they are able to announce major new financing.” (SD-Agencies)

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