NIO: This year, costs and gross margins are under pressure; the company is working with the supply chain to reduce negative impacts.

IT House, March 11 — On March 10, NIO CFO Qu Yu stated during the Q4 and full-year financial report call that in 2026, bulk materials such as copper and lithium carbonate will continue to see price increases with significant volatility. This has indeed put considerable pressure on the company’s cost control and gross profit margins. However, the overall situation for the year remains unclear, and the company is working with the supply chain to explore ways to continuously improve efficiency and reduce negative impacts on gross margins.

During the call, it was also mentioned that based on the high gross margin performance of larger vehicles, the company maintains an annual growth target of 40-50% and aims to achieve non-GAAP profitability for the full year. Additionally, NIO’s services and community business achieved profitability in 2025, with revenue reaching 10 billion yuan, and this will continue to grow this year, contributing positive gross profit to the company.

Furthermore, each NIO vehicle model has its own sales team, which seeks to balance gross profit and sales volume for each model to achieve high-quality growth. According to previous reports by IT House, NIO founder, chairman, and CEO Li Bin revealed that Shenji’s second advanced intelligent chip, designed for a broader customer base, has successfully gone through tape-out and is currently in mass production.