蔚来2026年第一季度业绩报告 NIO Inc. Reports Unaudited First Quarter 2026 Financial Results

NIOInc.ReportsUnauditedFirstQuarter2026FinancialResults

05/21/2026

QuarterlyTotalRevenuesReachedRMB25,532.7Million(US$3,701.5Million)i

QuarterlyVehicleDeliveriesWere83,465Units

SHANGHAI,China,May21,2026(GLOBENEWSWIRE)--NIOInc.(NYSE:NIO;HKEX:9866;SGX:NIO)(“NIO”orthe“Company”),apioneerandaleadingcompanyintheglobalsmartelectricvehiclemarket,todayannounceditsunauditedfinancialresultsforthefirstquarterendedMarch31,2026.

OperatingHighlightsfortheFirstQuarterof2026

Vehicledeliverieswere83,465inthefirstquarterof2026,representinganincreaseof98.3%fromthefirstquarterof2025,andadecreaseof33.1%fromthefourthquarterof2025.Thedeliveriesconsistedof58,543vehiclesfromNIObrand,13,339vehiclesfromONVObrand,and11,583vehiclesfromFIREFLYbrand.

KeyOperatingResults

Deliveries

2026Q1

83,465

2025Q4

124,807

2025Q3

87,071

2025Q2

72,056

Deliveries

2025Q1

2024Q4

2024Q3

2024Q2

42,094

72,689

61,855

57,373

FinancialHighlightsfortheFirstQuarterof2026

VehiclesaleswereRMB22,783.7million(US$3,302.9million)inthefirstquarterof2026,representinganincreaseof129.2%fromthefirstquarterof2025andadecreaseof27.9%fromthefourthquarterof2025.

Vehiclemarginiiwas18.8%inthefirstquarterof2026,comparedwith10.2%inthefirstquarterof2025and18.1%inthefourthquarterof2025.

TotalrevenueswereRMB25,532.7million(US$3,701.5million)inthefirstquarterof2026,representinganincreaseof112.2%fromthefirstquarterof2025andadecreaseof26.3%fromthefourthquarterof2025.

GrossprofitwasRMB4,859.1million(US$704.4million)inthefirstquarterof2026,representinganincreaseof428.4%fromthefirstquarterof2025andadecreaseof20.0%fromthefourthquarterof2025.

Grossmarginwas19.0%inthefirstquarterof2026,comparedwith7.6%inthefirstquarterof2025and17.5%inthefourthquarterof2025.

LossfromoperationswasRMB308.8million(US$44.8million)inthefirstquarterof2026,comparedwithlossfromoperationsofRMB6,418.1millioninthefirstquarterof2025andprofitfromoperationsofRMB807.3millioninthefourthquarterof2025.Excludingshare-basedcompensationexpenses,adjustedprofitfromoperations(non-GAAP)wasRMB66.8million(US$9.7million)inthefirstquarterof2026,comparedwithadjustedlossfromoperations(non-GAAP)ofRMB5,947.2millioninthefirstquarterof2025andadjustedprofitfromoperations(non-GAAP)ofRMB1,251.3millioninthefourthquarterof2025.

NetlosswasRMB332.1million(US$48.1million)inthefirstquarterof2026,comparedwithnetlossofRMB6,750.0millioninthefirstquarterof2025andnetprofitofRMB282.7millioninthefourthquarterof2025.Excludingshare-basedcompensationexpenses,adjustednetprofit(non-GAAP)wasRMB43.5million(US$6.3million)inthefirstquarterof2026,comparedwithadjustednetloss(non-GAAP)ofRMB6,279.1millioninthefirstquarterof2025andadjustednetprofit(non-GAAP)ofRMB726.8millioninthefourthquarterof2025.

Cashandcashequivalents,restrictedcash,short-terminvestmentandlong-termtimedepositswereRMB48.2billion(US$7.0billion)asofMarch31,2026.

KeyFinancialResultsfortheFirstQuarterof2026

(inRMBmillion,exceptforpercentage)

2026Q12025Q42025Q1%Changeiii

VehicleSales

VehicleMargin

22,783.7

18.8%

31,606.2

18.1%

9,939.3

10.2%

QoQ

-27.9%

70bp

YoY

129.2%

860bp

TotalRevenues

25,532.7

34,650.2

12,034.7

-26.3%

112.2%

GrossProfit

4,859.1

6,074.1

919.6

-20.0%

428.4%

GrossMargin

19.0%

17.5%

7.6%

150bp

1,140bp

(Loss)/ProfitfromOperations

(308.8)

807.3

(6,418.1)

N/A

-95.2%

AdjustedProfit/(Loss)fromOperations(non-GAAP)

66.8

1,251.3

(5,947.2)

-94.7%

N/A

Net(Loss)/Profit

(332.1)

282.7

(6,750.0)

N/A

-95.1%

AdjustedNetProfit/(Loss)(non-GAAP)

43.5

726.8

(6,279.1)

-94.0%

N/A

RecentDevelopments

DeliveriesinApril2026

TheCompanydelivered29,356vehiclesinApril2026.AsofApril30,2026,theCompanyhaddelivered112,821vehiclesin2026,withcumulativedeliveriesreaching1,110,413.

DebutofNIOES9

OnApril9,2026,NIO’sflagshipexecutiveSUV,theES9,officiallycommencedpre-sales,andwillbeofficiallylaunchedandcommencedeliveryonMay27,2026.Astheculminationofoveradecadeoftechnologicalinnovation,theES9redefinesthebenchmarkforflagshipSUVsthroughitssignaturedesign,exceptionalspace,advancedintelligence,refinedcomfort,andcomprehensivesafety.TheES9,featuringover40industry-firsttechnologiesandnearly40class-leadingconfigurations,issettousherintheeraofbatteryelectricvehiclesforexecutiveflagshipSUVs.

CommencementofONVOL80delivery

OnApril28,2026,ONVOcommencedthepre-saleofitsflagshiplargefive-seatSUV,theL80,withdeliveriescommencingshortlyafteritsofficiallaunchonMay15,2026.FullyequippedwithONVO’slatestflagshiptechnologiesinspatialengineering,vehiclesafety,andlightweightdesign,theL80setsanewbenchmarkasChina’sfive-seatSUVwiththelargesttrunkspaceandoutstandingversatility.Leveragingtechnologicalinnovationtoredefineuserexperience,theL80willexpandtheaddressablescenariosoflargefive-seatSUVs,accompanyingfamiliesoneveryjourneyofjoy.

CEOandCFOComments

“Inthefirstquarterof2026,theCompanydelivered83,465smartelectricvehicles,representingayear-over-yearincreaseof98.3%.Startingfromthesecondquarter,theCompanyhasenteredanintensivenewproductlaunchanddeliverycycle.Weexpecttotaldeliveriesinthesecondquartertorangebetween110,000and115,000vehicles,withayear-over-yeargrowthof52.7%to59.6%,”saidWilliamBinLi,founder,chairman,andchiefexecutiveofficerofNIO.

“Afterelevenyearsofsustainedinvestmentanddedication,theCompanyhasbuiltcomprehensivesystematicinnovationcapabilities,servingasthecorefoundationforustocontinuouslylaunchinnovativeproductsandstrengthenourlong-termcompetitiveness.TheNIOAll-NewES8hasrankedfirstinsalesinbothChina’slargeSUVsegmentandthesegmentpricedaboveRMB400,000forfiveconsecutivemonths.TheNIOES9,ourflagshipexecutiveSUV,integratesmultipleindustry-firsttechnologiesandclass-leadingfeatures,andispoisedtoleadthepremiumflagshipexecutiveSUVsegmentintothebatteryelectricera.Thisyear,poweredbyNIO’sin-housedevelopedsmartdrivingchip,NIOWorldModelandthefull-domainvehicleoperatingsystem,ONVO’snewmodelswillundergocomprehensiveupgradesinsmarttechnologies,continuouslyenhancinguserexperience.TherecentlylaunchedONVOL80,ONVO’sflagshiplargefive-seatSUV,caterstobroaderuserneedsthroughinnovativespaceandlifestyledesign.FIREFLYwillcontinuetolaunchspecialeditionmodelstodeepenemotionalconnectionswithusers,”addedWilliamBinLi.

"Inthefirstquarterof2026,ourvehiclemarginstoodat18.8%,improvingquarter-over-quarterforfourconsecutivequarters.Othersalesmarginreached20.6%,afour-yearhigh,supportedbytheexpandingscaleandimprovingprofitabilityofourservicesandcommunity-relatedbusinessesasouruserbasecontinuestogrow.Wealsomaintainedpositivenon-GAAPoperatingprofitinthequarter,andcashreservescontinuedtoincrease,”saidStanleyYuQu,NIO’schieffinancialofficer.“Weareencouragedbythecontinuedimprovementacrossallkeyoperatingmetrics.Lookingahead,wewillfurtherenhancecostandoperationalefficiency

whilestrengtheningoursustainablebusinesscapabilities.”

FinancialResultsfortheFirstQuarterof2026

Revenues

Totalrevenuesinthefirstquarterof2026wereRMB25,532.7million(US$3,701.5million),representinganincreaseof112.2%fromthefirstquarterof2025andadecreaseof26.3%fromthefourthquarterof2025.

Vehiclesalesinthefirstquarterof2026wereRMB22,783.7million(US$3,302.9million),representinganincreaseof129.2%fromthefirstquarterof2025andadecreaseof27.9%fromthefourthquarterof2025.Theincreaseinvehiclesalesoverthefirstquarterof2025wasmainlyduetoanincreaseindeliveryvolumeandahigheraveragesellingpricemainlydrivenbyafavorableproductmix.Thedecreaseinvehiclesalesoverthefourthquarterof2025wasmainlyattributabletoadecreaseindeliveryvolume.

Othersalesinthefirstquarterof2026wereRMB2,748.9million(US$398.5million),representinganincreaseof31.2%fromthefirstquarterof2025andadecreaseof9.7%fromthefourthquarterof2025.Theincreaseinothersalesoverthefirstquarterof2025wasmainlydueto(i)increaseinsalesofparts,accessoriesandafter-salesvehicleservices,andprovisionofpowersolutions,asaresultofcontinuedgrowthinthenumberofusers,and(ii)increaseinrevenuesfromautofinancingservices.Thedecreaseinothersalesoverthefourthquarterof2025wasmainlyduetodecreaseinrevenuesfromtechnicalresearchanddevelopmentservicesandusedcarsales.

CostofSalesandGrossMargin

Costofsalesinthefirstquarterof2026wasRMB20,673.5million(US$2,997.0million),representinganincreaseof86.0%fromthefirstquarterof2025andadecreaseof27.7%fromthefourthquarterof2025.Theincreaseincostofsalesoverthefirstquarterof2025wasmainlyattributabletoanincreaseindeliveryvolume.Thedecreaseincostofsalesoverthefourthquarterof2025wasmainlyattributabletoadecreaseindeliveryvolume.

Grossprofitinthefirstquarterof2026wasRMB4,859.1million(US$704.4million),representinganincreaseof428.4%fromthefirstquarterof2025andadecreaseof20.0%fromthefourthquarterof2025.

Grossmargininthefirstquarterof2026was19.0%,comparedwith7.6%inthefirstquarterof2025and17.5%inthefourthquarterof2025.Theincreaseingrossmarginoverthefirstquarterof2025wasmainlyattributabletotheincreasedvehiclemargin.Theincreaseingrossmarginoverthefourthquarterof2025wasmainlydueto(i)animprovementinthegrosslossratefromprovisionofpowersolutions,and(ii)increaseinsalesfromparts,accessoriesandafter-salesvehicleserviceswithrelativelyhighermargins.

Vehiclemargininthefirstquarterof2026was18.8%,comparedwith10.2%inthefirstquarterof2025and18.1%inthefourthquarterof2025.Theincreaseinvehiclemarginfromthefirstquarterof2025andthefourthquarterof2025wasmainlyattributabletoamorefavorableproductmix.

OperatingExpenses

Researchanddevelopmentexpensesinthefirstquarterof2026wereRMB1,885.0million(US$273.3million),representingadecreaseof40.7%fromthefirstquarterof2025andadecreaseof7.0%fromthefourthquarterof2025.Excludingshare-basedcompensationexpenses,adjustedresearchanddevelopmentexpenses(non-GAAP)wereRMB1,708.2million(US$247.6million)inthefirstquarterof2026,representingadecreaseof41.4%fromthefirstquarterof2025andadecreaseof2.1%fromthefourthquarterof2025.Thedecreaseinresearchanddevelopmentexpensesoverthefirstquarterof2025wasmainlyduetodecreasedpersonnelcostsinresearchanddevelopmentfunctionsprimarilyasaresultoforganizationaloptimization,anddecreaseddesignanddevelopmentcostsmainlyresultingfromdifferentstagesofdevelopmentandimprovedoperationalefficiency.Thedecreaseinresearchanddevelopmentexpensesoverthefourthquarterof2025wasmainlyduetodecreaseddesignanddevelopmentcosts,whichresultedfromdifferentstagesofdevelopmentandimprovedoperationalefficiency.

Selling,generalandadministrativeexpensesinthefirstquarterof2026wereRMB3,497.3million(US$507.0million),representingadecreaseof20.5%fromthefirstquarterof2025andadecreaseof1.1%fromthefourthquarterof2025.Excludingshare-basedcompensationexpenses,adjustedselling,generalandadministrativeexpenses(non-GAAP)wereRMB3,308.7million(US$479.7million)inthefirstquarterof2026,representingadecreaseof21.4%fromthefirstquarter

of2025andadecreaseof2.4%fromthefourthquarterof2025.Thedecreaseinselling,generalandadministrativeexpensesoverthefirstquarterof2025wasmainlyattributabletoadecreaseinpersonnelandrelatedcostsinmarketingandothersupportingfunctionsasaresultoforganizationaloptimization,aswellasadecreaseinsalesandmarketingactivities.Selling,generalandadministrativeexpensesinthefirstquarterof2026remainedrelativelystablecomparedwiththefourthquarterof2025.

(Loss)/ProfitfromOperations

Lossfromoperationsinthefirstquarterof2026wasRMB308.8million(US$44.8million),comparedwithlossfromoperationsofRMB6,418.1millioninthefirstquarterof2025andprofitfromoperationsofRMB807.3millioninthefourthquarterof2025.Excludingshare-basedcompensationexpenses,adjustedprofitfromoperations(non-GAAP)wasRMB66.8million(US$9.7million)inthefirstquarterof2026,comparedwithadjustedlossfromoperations(non-GAAP)ofRMB5,947.2millioninthefirstquarterof2025andadjustedprofitfromoperations(non-GAAP)ofRMB1,251.3millioninthefourthquarterof2025.

Net(Loss)/ProfitandEarningsPerShare/ADS

Netlossinthefirstquarterof2026wasRMB332.1million(US$48.1million),comparedwithnetlossofRMB6,750.0millioninthefirstquarterof2025andnetprofitofRMB282.7millioninthefourthquarterof2025.Excludingshare-basedcompensationexpenses,adjustednetprofit(non-GAAP)wasRMB43.5million(US$6.3million)inthefirstquarterof2026,comparedwithadjustednetloss(non-GAAP)ofRMB6,279.1millioninthefirstquarterof2025andadjustednetprofitofRMB726.8millioninthefourthquarterof2025.

NetlossattributabletoNIO’sordinaryshareholdersinthefirstquarterof2026wasRMB496.0million(US$71.9million),comparedwithnetlossattributabletoNIO’sordinaryshareholdersofRMB6,891.1millioninthefirstquarterof2025andnetprofitattributabletoNIO’sordinaryshareholdersofRMB122.4millioninthefourthquarterof2025.Excludingshare-basedcompensationexpensesandaccretiononredeemablenon-controllingintereststoredemptionvalue,adjustednetprofitattributabletoNIO’sordinaryshareholders(non-GAAP)wasRMB44.5million(US$6.5million)inthefirstquarterof2026,comparedwithadjustednetlossattributabletoNIO’sordinaryshareholders(non-GAAP)ofRMB6,275.6millioninthefirstquarterof2025andadjustednetprofitattributabletoNIO’sordinaryshareholders(non-GAAP)ofRMB728.1millioninthefourthquarterof2025.

Basicanddilutednetlossperordinaryshare/ADSinthefirstquarterof2026werebothRMB0.20(US$0.03),comparedwithbasicanddilutednetlossperordinaryshare/ADSofRMB3.29inthefirstquarterof2025andbasicanddilutednetprofitperordinaryshare/ADSofRMB0.05inthefourthquarterof2025.Excludingshare-basedcompensationexpensesandaccretiononredeemablenon-controllingintereststoredemptionvalue,adjustedbasicanddilutednetprofitpershare/ADS(non-GAAP)werebothRMB0.02(US$0.00)inthefirstquarterof2026,comparedwithadjustedbasicanddilutednetlosspershare/ADS(non-GAAP)ofRMB3.01inthefirstquarterof2025andadjustedbasicanddilutednetprofitperordinaryshare/ADS(non-GAAP)ofRMB0.29inthefourthquarterof2025.

BalanceSheet

Balanceofcashandcashequivalents,restrictedcash,short-terminvestmentandlong-termtimedepositswasRMB48.2billion(US$7.0billion)asofMarch31,2026.OurnetcurrentassetsturnedpositiveasofMarch31,2026andwegeneratedpositiveoperatingcashflowsandadjustednetprofit(non-GAAP)inthefirstquarterof2026,despiterecordinganetlossunderGAAPinthisquarter.Basedonourgoingconcernandliquidityassessment,whichconsidersourbusinessplanincludingrevenuegrowthfromthesalesofexistingandnewvehiclemodels,continuousoptimizationofoperationefficiencytoimproveoperatingcashflows,workingcapitalmanagement,theabilitytoraisefundsfrombanksunderavailablecreditquotasandothersourceswhenneeded,andevaluatesuncertaintiesastothesuccessfulexecutionofourbusinessplan,webelievethatourfinancialresources,includingouravailablecashandcashequivalents,restrictedcashandshort-terminvestments,cashgeneratedfromoperatingactivitiesandfundsfromavailablecreditquotasandothersourceswillbesufficienttosupportourcontinuousoperationsintheordinarycourseofbusinessforthenexttwelvemonths.

BusinessOutlook

Forthesecondquarterof2026,theCompanyexpects:

Deliveriesofvehiclestobebetween110,000and115,000vehicles,representinganincreaseofapproximately52.7%to

59.6%fromthesamequarterof2025.

TotalrevenuestobebetweenRMB32,777million(US$4,752million)andRMB34,436million(US$4,992million),representinganincreaseofapproximately72.4%to81.2%fromthesamequarterof2025.

ThisbusinessoutlookreflectstheCompanyscurrentandpreliminaryviewonthebusinesssituationandmarketcondition,whichissubjecttochange.

ConferenceCall

TheCompanysmanagementwillhostanearningsconferencecallat8:00AMU.S.EasternTimeonMay21,2026(8:00PMBeijing/HongKong/SingaporeTimeonMay21,2026).

AliveandarchivedwebcastoftheconferencecallwillbeavailableontheCompanysinvestorrelationswebsite

at

/news-events/events.

Forparticipantswhowishtojointheconferenceusingdial-innumbers,pleaseregisterinadvanceusingthelinkprovidedbelowanddialin10minutespriortothecall.Dial-innumbers,passcodeanduniqueaccessPINwouldbeprovideduponregistering.

/diamondpass/10054768-rm1exy.html

Areplayoftheconferencecallwillbeaccessiblebyphoneatthefollowingnumbers,untilMay29,2026:

UnitedStates:+1-855-883-1031

HongKong,China:+852-800-930-639

Mainland,China:+86-400-1209-216

Singapore:+65-800-1013-223

International:+61-7-3107-6325

ReplayPIN:10054768

AboutNIOInc.

NIOInc.isapioneerandaleadingcompanyintheglobalsmartelectricvehiclemarket.FoundedinNovember2014,NIOaspirestoshapeasustainableandbrighterfuturewiththemissionofBlueSkyComing.NIOenvisionsitselfasauserenterprisewhereinnovativetechnologymeetsexperienceexcellence.NIOdesigns,develops,manufacturesandsellssmartelectricvehicles,drivinginnovationsinnext-generationcoretechnologies.NIOdistinguishesitselfthroughcontinuoustechnologicalbreakthroughsandinnovations,exceptionalproductsandservices,andacommunityforsharedgrowth.NIOprovidespremiumsmartelectricvehiclesundertheNIObrand,premiumsmartelectricvehiclesforfamiliesthroughtheONVObrand,andsmallsmarthigh-endelectriccarswiththeFIREFLYbrand.

SafeHarborStatement

Thispressreleasecontainsstatementsthatmayconstituteforward-lookingstatementspursuanttothesafeharborprovisionsoftheU.S.PrivateSecuritiesLitigationReformActof1995.Theseforward-lookingstatementscanbeidentifiedbyterminologysuchaswill,expects,anticipates,aims,future,intends,plans,believes,estimates,likelytoandsimilarstatements.NIO

mayalsomakewrittenororalforward-lookingstatementsinitsperiodicreportstotheU.S.SecuritiesandExchangeCommission(theSEC),initsannualreporttoshareholders,inannouncements,circularsorotherpublicationsmadeonthewebsitesofeachofTheStockExchangeofHongKongLimited(theSEHK)andtheSingaporeExchangeSecuritiesTradingLimited(theSGX-ST),inpressreleasesandotherwrittenmaterialsandinoralstatementsmadebyitsofficers,directorsoremployeestothirdparties.Statementsthatarenothistoricalfacts,includingstatementsaboutNIOsbeliefs,plansandexpectations,areforward-lookingstatements.Forward-lookingstatementsinvolveinherentrisksanduncertainties.Anumberoffactorscouldcauseactualresultstodiffermateriallyfromthosecontainedinanyforward-lookingstatement,includingbutnotlimitedtothefollowing:NIOsstrategies;NIOsfuturebusinessdevelopment,financialconditionandresultsofoperations;NIOsabilitytodevelopandmanufacturevehiclesofsufficientqualityandappealtocustomersonscheduleandonalargescale;itsabilitytoensureandexpandmanufacturingcapacitiesincludingestablishingandmaintainingpartnershipswiththirdparties;itsabilitytoprovideconvenientandcomprehensivepowersolutionstoitscustomers;theviability,growthpotentialandprospectsofthebatteryswapping,BaaS,andNIOAssistedandIntelligentDrivinganditssubscriptionservices;itsabilitytoimprovethetechnologiesordevelopalternativetechnologiesinmeetingevolvingmarketdemandandindustrydevelopment;NIOsabilitytosatisfythemandatedsafetystandardsrelatingtomotorvehicles;itsabilitytosecuresupplyofrawmaterialsorothercomponentsusedinitsvehicles;itsabilitytosecuresufficientreservationsandsalesofitsvehicles;itsabilitytocontrolcostsassociatedwithitsoperations;itsabilitytobuilditscurrentandfuturebrands;generaleconomicandbusinessconditionsgloballyandinChinaandassumptionsunderlyingorrelatedtoanyoftheforegoing.FurtherinformationregardingtheseandotherrisksisincludedinNIOsfilingswiththeSECandtheannouncementsandfilingsonthewebsitesofeachoftheSEHKandSGX-ST.Allinformationprovidedinthispressreleaseisasofthedateofthispressrelease,andNIOdoesnotundertakeanyobligationtoupdateany

forward-lookingstatement,exceptasrequiredunderapplicablelaw.

Non-GAAPDisclosure

TheCompanyusesnon-GAAPmeasures,suchasadjustedcostofsales(non-GAAP),adjustedresearchanddevelopmentexpenses(non-GAAP),adjustedselling,generalandadministrativeexpenses(non-GAAP),adjustedprofit/(loss)fromoperations(non-GAAP),adjustednetprofit/(loss)(non-GAAP),adjustednetprofit/(loss)attributabletoordinaryshareholders(non-GAAP)andadjustedbasicanddilutednetprofit/(loss)pershare/ADS(non-GAAP),inevaluatingitsoperatingresultsandforfinancialandoperationaldecision-makingpurposes.TheCompanydefinesadjustedcostofsales(non-GAAP),adjustedresearchanddevelopmentexpenses(non-GAAP),adjustedselling,generalandadministrativeexpenses(non-GAAP)andadjustedprofit/(loss)fromoperations(non-GAAP)andadjustednetprofit/(loss)(non-GAAP)ascostofsales,researchanddevelopmentexpenses,selling,generalandadministrativeexpenses,profit/(loss)fromoperationsandnetprofit/(loss)excludingshare-basedcompensationexpensesandorganizationaloptimizationcharges.TheCompanydefinesadjustednetprofit/(loss)attributabletoordinaryshareholders(non-GAAP)andadjustedbasicanddilutedprofit/(loss)pershare/ADS(non-GAAP)asprofit/(loss)attributabletoordinaryshareholdersandbasicanddilutedprofit/(loss)pershare/ADSexcludingshare-basedcompensationexpenses,organizationaloptimizationchargesandaccretiononredeemablenon-controllingintereststoredemptionvalue.Byexcludingtheimpactofshare-basedcompensationexpenses,organizationaloptimizationchargesandaccretiononredeemablenon-controllingintereststoredemptionvalue,whichareeithernon-cashornotindicativeoftheCompany’sordinaryorongoingoperationsduetotheirsizeornature,theCompanybelievesthatthenon-GAAPfinancialmeasureshelpidentifyunderlyingtrendsinitsbusinessandenhancetheoverallunderstandingoftheCompany’spastperformanceandfutureprospects.TheCompanyalsobelievesthatthenon-GAAPfinancialmeasuresallowforgreatervisibilitywithrespecttokeymetricsusedbytheCompany’smanagementinitsfinancialandoperationaldecision-making.

Thenon-GAAPfinancialmeasuresarenotpresentedinaccordancewithU.S.GAAPandmaybedifferentfromnon-GAAPmethodsofaccountingandreportingusedbyothercompanies.Thenon-GAAPfinancialmeasureshavelimitationsasanalyticaltoolsandwhenassessingtheCompany’soperatingperformance,investorsshouldnotconsidertheminisolation,orasasubstitutefornetprofit/(loss)orotherconsolidatedstatementsofcomprehensiveprofit/(loss)datapreparedinaccordancewithU.S.GAAP.TheCompanyencouragesinvestorsandotherstoreviewitsfinancialinformationinitsentiretyandnotrelyonasinglefinancialmeasure.

TheCompanymitigatestheselimitationsbyreconcilingthenon-GAAPfinancialmeasurestothemostcomparableU.S.GAAPperformancemeasures,allofwhichshouldbeconsideredwhenevaluatingtheCompany’sperformance.

Formoreinformationonthenon-GAAPfinancialmeasures,pleaseseethetablecaptioned“UnauditedReconciliationofGAAPandNon-GAAPResults”setforthattheendofthispressrelease.

ExchangeRate

ThisannouncementcontainstranslationsofcertainRenminbiamountsintoU.S.dollarsatspecifiedratessolelyfortheconvenienceofthereader.Unlessotherwisestated,alltranslationsfromRenminbitoU.S.dollarsweremadeattherateofRMB6.8980toUS$1.00,thenoonbuyingrateineffectonMarch31,2026intheH.10statisticalreleaseoftheFederalReserveBoard.TheCompanymakesnorepresentationthattheRenminbiorU.S.dollarsamountsreferredcouldbeconvertedintoU.S.dollarsorRenminbi,asthecasemay