Nio Sinks as Chinese EV Startup’s CFO Resigns
Dou Shicong
DATE:  Jul 08 2024
/ SOURCE:  Yicai
Nio Sinks as Chinese EV Startup’s CFO Resigns Nio Sinks as Chinese EV Startup’s CFO Resigns

(Yicai) July 8 -- Nio slumped in both the US and Hong Kong after the Chinese electric car startup announced the sudden departure of its chief financial officer despite recent record sales.

Nio’s share price [HKG:9866] closed down 3.9 percent at HKD35.85 (USD4.59) in Hong Kong today, and its US-traded stock [NASDAQ:NIO] finished the week down 5.1 percent at USD4.62 on Friday.

Feng Wei, who served as the company’s chief financial officer for nearly five years, has resigned for personal reasons, the Shanghai-based company said on July 5. He will be replaced by Qu Yu, senior vice president of finance.

Feng joined Nio in November 2019 when the company was facing a severe cash flow crisis. Under his leadership, Nio was able to get a cash injection from the Hefei municipal government in eastern Anhui province. Sales gradually improved and as of March 31, the firm had cash reserves of CNY45.3 billion (USD6.3 billion), according to its latest financial report.

Feng, who previously worked as an automotive analyst at brokerages China International Capital and Everbright Securities, has chosen to leave just as sales reach record highs.

Sales more than doubled in the second quarter from a year earlier to 57,373 units, reversing a 3 percent decline in the first three months, according to latest figures. And June deliveries doubled year on year to 21,209 autos, setting a monthly sales record.

56-year-old Qu, though, will still have his work cut out for him. Nio has yet to turn a profit since it was set up 10 years ago. The firm’s net losses widened 9 percent in the first quarter from a year earlier to CNY5.2 billion (USD718.1 million) and revenue slumped 7 percent to CNY9.9 billion (USD1.4 billion) due to the ongoing EV price war, according to its latest financial report.

Qu previously worked in financial management at US car e-systems solution provider Lear Corp., US tech firm Johnson Controls International and UK professional services company Pricewaterhouse Coopers.

Editor: Kim Taylor

Follow Yicai Global on
Keywords:   Nio