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Registration number: 12118475

NIO Performance Engineering Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

NIO Performance Engineering Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Profit and Loss Account

9

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13 to 23

 

NIO Performance Engineering Limited

Company Information

Directors

Hui Zhang

Danilo Teobaldi

Registered office

Building 6, Begbroke Science Park
Begbroke Hill
Woodstock Road
Oxfordshire
OX5 1PF

Auditors

UHY Ross Brooke
Suite I Windrush Court
Abingdon Business Park
Abingdon
Oxfordshire
OX14 1SY

 

NIO Performance Engineering Limited

Strategic Report for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of the company is automotive R&D for electric vehicle development and marketing support services for group companies.

Fair review of the business

- NIO Performance Engineering Limited (“the company”) provides automotive R&D and engineering services for electric vehicle development to support the NIO Group.

- During the year recharges were made to Group companies for costs incurred. Future costs are to be invoiced as and when they are incurred.

- Turnover relating to the recharges mentioned above for the year amounted to £11.3m (2022: £14.8m) with a Net Profit After Tax of £0.5m (2022: £0.8m.). The Net Profit/ (Loss) figure for the year includes a Share Based Payment expense of £0.5m (2022: £0.4m)

- At the end of the year the company had total reserves of £2.8m (2022: £1.7m)

- At the end of the year the company had cash at bank balances of £3.6m (2022: £3.6m)

- The Directors are satisfied with the financial performance and position of the company and expect the company to remain profitable in future years.

- The company is a subsidiary of the NIO Inc group of companies (“the group”) and its strategic objectives are aligned with those of the Group. For further details please refer to the financial statements of NIO Inc https://ir.nio.com/financials/annual-reports, which do not form part of this report. NIO Inc was listed on The New York Stock exchange in September 2018.

- NIO Inc is a pioneer and a leading company in the premium smart electric vehicle market. They design, develop, manufacture, and sell premium smart electric vehicles, driving innovations in next-generation technologies in assisted and intelligent driving, digital technologies, electric powertrains and batteries. They differentiate themselves through their continuous technological breakthroughs and innovations, such as their industry-leading battery swapping technologies, Battery as a Service, or BaaS, as well as their proprietary NIO assisted and intelligent driving and its subscription services.

Our Vehicles

NIO design, develop, manufacture and sell our vehicles in the premium smart electric vehicle market. We currently offer our products and services in China, Norway, Germany, the Netherlands, Denmark and Sweden and plan to expand into more global markets to capture the fast-growing EV demand.

In 2023, we completed our product lineup on the NIO Technology 2.0 (NT2.0) by starting deliveries of the EC7, All-New ES6, All-New ES8, ET5T, and All-New EC6. With enhanced driving and riding experiences with exquisite design, high performance, superior comfort, and advanced digital systems, our product portfolio caters to wide-ranging journeys of users for their family, business and leisure needs. In December 2023, we launched the ET9, a smart electric executive flagship. The ET9 embodies our latest advancements in technological research and development, presenting a combination of flagship-style exterior, innovative executive space, leading driving and riding experience, intelligent technologies, efficient power solutions, and comprehensive safety standards. We expect to start deliveries of the ET9 in the first quarter of 2025.

Inheriting our high-performance DNA marked by dual-motor intelligent All-Wheel-Drive system, all NIO models are able to achieve outstanding performances in 0-100 km/h and braking distance. Enabled by battery swapping technology, all our models are compatible with different battery packs including Standard Range Battery, Long Range Battery and Ultra-Long Range Battery, supporting different driving ranges and providing an upgradable and flexible user experience. We aim to deliver products with the highest safety and quality standards to our users in line with our core values and commitments.

 

NIO Performance Engineering Limited

Strategic Report for the Year Ended 31 December 2023

We believe our vehicles are well-positioned in the premium smart electric vehicle market. We delivered 160,038 (2022: 122,486) vehicles, including 92,186 premium smart electric SUVs and 67,852 premium smart electric sedans in 2023.

In 2024, we expect to launch our new brand and commence deliveries of its first product, complementing our product portfolio and contributing to our vehicle sales. We are also developing more products to expand our addressable market segments.
 

Principal risks and uncertainties

In the course of its normal operating activities the company is exposed to a number of risks and uncertainties.

General economic risk
The company operates on a global stage and is subject to general economic risks which is seeks to manage at all times.

Currency risks
The company purchases materials and services in foreign currencies. At present these risks are mitigated by closely monitoring exchange rate movements. We do not currently see sufficient advantage to use currency instruments.

Specific industry risk
The company provides engineering support for the electric vehicle development of the road car business in China and is therefore reliant on the success of the NIO Group.

The automotive market is highly competitive and is subject to a number of significant risks. The Group have considered these risks and they are noted in the financial statements of NIO Inc which do not form part of this report.

These specific industry and other risks are actively managed at all times by Group Senior Management.

Covid-19
The Company in the UK was unaffected by Covid-19 during 2022 but still considers it as a risk. We continue to monitor the risk going forward and will react accordingly if and when required.

Personnel risk
NIO work extremely hard to attract and retain the strongest talent. Employees benefit from a great working environment and are encouraged to participate with the Group’s NIO Values (Vision, Action, Care & Honesty.)

Information & IT risk
The company operates up-to-date IT controls and procedures to protect its data and prevent unauthorised access, misuse or damage.

Brexit
The company continue to consider and have taken advice on Brexit for the company and its employees so that they are able to adapt to the various outcomes of the process.

Approved and authorised by the Board on 12 September 2024 and signed on its behalf by:
 

.........................................
Hui Zhang
Director

 

NIO Performance Engineering Limited

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors of the company

The directors who held office during the year were as follows:

Hui Zhang

Danilo Teobaldi

Research and development

The company continues to carry out automotive R&D for electric vehicle development.

Going concern

The financial statements have been prepared on a going concern basis. The company relies on the group intercompany support of its parent company NIO Nextev Limited and other group companies and will continue to provide services to the group by recharging costs incurred on a cost-plus basis.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 12 September 2024 and signed on its behalf by:
 

.........................................
Hui Zhang
Director

 

NIO Performance Engineering Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

NIO Performance Engineering Limited

Independent Auditor's Report to the Members of NIO Performance Engineering Limited

Opinion

We have audited the financial statements of NIO Performance Engineering Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

NIO Performance Engineering Limited

Independent Auditor's Report to the Members of NIO Performance Engineering Limited

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

NIO Performance Engineering Limited

Independent Auditor's Report to the Members of NIO Performance Engineering Limited

We obtained an understanding of the laws and regulations applicable to the company through discussions with management, and from our wider knowledge of the company and industry. We determined that the most significant laws and regulations, which may have a material effect on the financial statements, include the Companies Act 2006, Taxation Legislation, Employment Law and Health & Safety legislation.

• the identified laws and regulations were communicated to the audit engagement team;
• we assessed the extent of compliance with the laws and regulations identified, through making enquiries of management, inspecting legal correspondence, personnel records and health and safety logs.

We assessed the susceptibility of the company's financial statements to material misstatement due to fraud, by:

• reviewing managements’ own assessment of the company’s susceptibility to fraud;
• considering the strength of the control environment; and
• evaluating management’s incentives for fraudulent manipulation of the financial statements, such as profit-related earn-out incentives.

To address the risk of fraud, we:

• compared financial statement disclosures to supporting documentation;
• performed analytical procedures to identify any unusual trends;
• tested journal entries to identify unusual transactions; and
• investigated the rationale behind significant or unusual transactions, as well as key assumptions and
estimates used in the preparation of the financial statements.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Caroline Webster (Senior Statutory Auditor)
For and on behalf of UHY Ross Brooke, Statutory Auditor

Suite I Windrush Court
Abingdon Business Park
Abingdon
Oxfordshire
OX14 1SY

19 September 2024

 

NIO Performance Engineering Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

11,273,219

14,796,558

Gross profit

 

11,273,219

14,796,558

Administrative expenses

 

(11,216,432)

(14,797,811)

Other operating income

4

745,434

133,301

Operating profit

5

802,221

132,048

Other interest receivable and similar income

6

430

457

Interest payable and similar expenses

7

(33,482)

(28,665)

   

(33,052)

(28,208)

Profit before tax

 

769,169

103,840

Tax on profit

11

(260,087)

742,429

Profit for the financial year

 

509,082

846,269

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

NIO Performance Engineering Limited

Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

Profit for the year

509,082

846,269

Total comprehensive income for the year

509,082

846,269

 

NIO Performance Engineering Limited

(Registration number: 12118475)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

12

38,476

128,009

Tangible assets

13

631,132

617,967

 

669,608

745,976

Current assets

 

Debtors

14

6,170,519

5,817,570

Cash at bank and in hand

15

3,621,151

3,614,552

 

9,791,670

9,432,122

Creditors: Amounts falling due within one year

16

(7,691,740)

(8,428,702)

Net current assets

 

2,099,930

1,003,420

Net assets

 

2,769,538

1,749,396

Capital and reserves

 

Called up share capital

1

1

Other reserves

20

1,333,688

822,628

Profit and loss account

1,435,849

926,767

Total equity

 

2,769,538

1,749,396

Approved and authorised by the Board on 12 September 2024 and signed on its behalf by:
 

.........................................
Hui Zhang
Director

 

NIO Performance Engineering Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Other reserves
£

Profit and loss account
£

Total
£

At 1 January 2022

1

378,915

80,498

459,414

Profit for the year

-

-

846,269

846,269

Share based payment transactions

-

443,713

-

443,713

At 31 December 2022

1

822,628

926,767

1,749,396

Share capital
£

Share options reserve
£

Profit and loss account
£

Total
£

At 1 January 2023

1

822,628

926,767

1,749,396

Profit for the year

-

-

509,082

509,082

Share based payment transactions

-

511,060

-

511,060

At 31 December 2023

1

1,333,688

1,435,849

2,769,538

 

NIO Performance Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The principal place of business is:
Building 6, Begbroke Science Park
Begbroke Hill
Woodstock Road
Oxfordshire
OX5 1PF
United Kingdom

These financial statements were authorised for issue by the Board on 12 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in Sterling (£) and rounded to the nearest £.

Summary of disclosure exemptions

The company, being a member of a group which prepares publicly available consolidated financial statements, has taken advantage of the exemption granted in FRS 102 not to present a cash flow statement and certain information about financial instruments.

Going concern

The financial statements have been prepared on a going concern basis. The company relies on the group intercompany support of its parent company NIO Nextev Limited and other group companies and will continue to provide services to the group by recharging costs incurred on a cost-plus basis.

Judgements

No significant judgements have had to be made by management in preparing these financial statements.

Key sources of estimation uncertainty

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. None of these estimates have a significant level of uncertainty.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable net of discounts and value
added taxes. Turnover includes revenue earned from the rendering of services to Group companies.

Turnover from the rendering of services is recognised at the earlier of invoicing or following formal contract
agrreement.

 

NIO Performance Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date
of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the
respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary
items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing
on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax payable and deferred tax.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Office Equipment

Straight line over the useful life of 3 years

Fixtures and Fittings

Straight line over the useful life of 4 years

Plant and Machinery

Straight line over the useful life of 4 years

Motor Vehicles

Straight line over the useful life of 4 years

Leasehold Improvements

Straight line over the period of the lease

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life, commencing in 2021, as follows:

Asset class

Amortisation method and rate

Computer Software

Straight line over the useful life of 3 years

 

NIO Performance Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Share based payments

The company operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of NIO Inc. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Rendering of services

11,273,219

14,796,558

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Research & Development tax credits

745,434

133,301

 

NIO Performance Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

308,732

5,257,149

Amortisation expense

116,188

105,269

6

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

430

457

7

Interest payable and similar expenses

2023
£

2022
£

Foreign exchange (gains) / losses

33,482

28,665

 

NIO Performance Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

8

Staff costs

The aggregate payroll costs were as follows:

2023
£

2022
£

Wages and salaries

5,376,939

4,679,991

Social security costs

680,241

368,598

Other short-term employee benefits

57,881

47,416

Pension costs, defined contribution scheme

249,413

237,878

Share-based payment expenses

511,060

443,713

Other employee expense

185,200

134,107

7,060,734

5,911,703

The average number of persons employed by the company during the year, analysed by category was as follows:

2023
No.

2022
No.

Vehicle Engineering

53

48

Administration and support

2

2

Design

-

1

Other

2

1

57

52

9

Directors' remuneration

Directors were renumerated through other group companies.

10

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

18,750

17,050


 

 

NIO Performance Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

11

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

58,000

440,302

Deferred taxation

Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods

202,087

(1,182,731)

Tax expense/(receipt) in the income statement

260,087

(742,429)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

769,169

103,840

Corporation tax at standard rate

146,142

19,730

Effect of expense not deductible in determining taxable profit/ (tax loss)

4,701

2,954

Decrease in UK and foreign current tax from adjustment for prior periods

(163)

(233,558)

Tax (decrease)/increase from effect of capital allowances and depreciation

(154,294)

688,611

Tax increase/(decrease) from other short-term timing differences - deferred taxation

202,087

(1,182,731)

Tax increase from effect of exercise of employee share options

61,614

42,986

Tax decrease from effect of adjustment in research and development tax credit

-

(80,421)

Total tax charge/(credit)

260,087

(742,429)

 

NIO Performance Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

12

Intangible assets

Computer Software
 £

Total
£

Cost or valuation

At 1 January 2023

335,298

335,298

Additions acquired separately

26,655

26,655

At 31 December 2023

361,953

361,953

Amortisation

At 1 January 2023

207,289

207,289

Amortisation charge

116,188

116,188

At 31 December 2023

323,477

323,477

Carrying amount

At 31 December 2023

38,476

38,476

At 31 December 2022

128,009

128,009

 

NIO Performance Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

13

Tangible assets

Short leasehold land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

551,390

44,131

154,079

1,135,990

8,148,382

10,033,972

Additions

-

28,923

21,032

271,943

-

321,898

At 31 December 2023

551,390

73,054

175,111

1,407,933

8,148,382

10,355,870

Depreciation

At 1 January 2023

550,723

44,131

68,418

604,351

8,148,382

9,416,005

Charge for the year

190

6,214

36,712

265,617

-

308,733

At 31 December 2023

550,913

50,345

105,130

869,968

8,148,382

9,724,738

Carrying amount

At 31 December 2023

477

22,709

69,981

537,965

-

631,132

At 31 December 2022

667

-

85,661

531,639

-

617,967

 

NIO Performance Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Included within the net book value of land and buildings above is £477 (2022 - £667) in respect of short leasehold land and buildings.
 

14

Debtors

Note

2023
£

2022
£

Amounts owed by related parties

4,191,385

3,340,032

Other debtors

 

52,968

218,587

Prepayments

 

862,138

802,430

Accrued income

 

-

273,790

Deferred tax assets

11

980,644

1,182,731

Income tax asset

11

83,384

-

   

6,170,519

5,817,570

15

Cash and cash equivalents

2023
£

2022
£

Cash on hand

6,435

6,601

Cash at bank

3,614,716

3,607,951

3,621,151

3,614,552

16

Creditors

Note

2023
£

2022
£

Due within one year

 

Trade creditors

 

522,682

507,085

Amounts due to related parties

6,319,124

6,194,355

Social security and other taxes

 

251,637

261,726

Outstanding defined contribution pension costs

 

49,620

60,158

Other payables

 

842

1,431

Accruals

 

547,835

793,987

Income tax liability

11

-

609,960

 

7,691,740

8,428,702

 

NIO Performance Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

17

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £249,413 (2022 - £237,878).

Contributions totalling £49,620 (2022 - £60,158) were payable to the scheme at the end of the year and are included in creditors.

18

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary Shares of £1 each

1

1

1

1

         

Rights, preferences and restrictions

Ordinary Shares have the following rights, preferences and restrictions:
Voting Rights - Shares rank equally for voting purposes. On a show of hands each member shall have one vote and on a poll each member shall have one vote per share held.
Dividend Rights - Each share ranks equally for any dividend declared.
Distribution Rights on a Winding Up - Each share ranks equally for any distribution made on a winding up.
Redeemable Shares - The shares are not redeemable.

19

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

89,650

50,300

Later than one year and not later than five years

106,600

-

196,250

50,300

The amount of non-cancellable operating lease payments recognised as an expense during the year was £173,187 (2022 - £140,925).

 

NIO Performance Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

20

Share-based payments

Stock Incentive Plan

Scheme details and movements

In 2015, NIO Inc adopted the 2015 Stock Incentive Plan (the “2015 Plan”), which allowed the plan administrator to grant options and restricted shares of NIO Inc to employees, directors and consultants of the group of which NIO Inc is the parent.

The share options under the 2015 Plan have a contractual term of ten years from the grant date, and vest over a period of four years of continuous service, one quarter (1/4) of which vest upon the first anniversary of the stated vesting commencement date and the remaining vest rateably over the following 36 months.

In 2016, 2017 and 2018, the Board of Directors of NIO Inc further approved the 2016 Stock Incentive Plan (the “2016 Plan”), the 2017 Stock Incentive Plan (the “2017 Plan") and the 2018 Stock Incentive Plan (the "2018 Plan”). The share options of NIO Inc under the 2016, 2017 and 2018 Plans have a contractual term of seven or ten years from the grant date, and vest over a period of four or five years of continuous service.

The fair value of each option granted under the 2015, 2016, 2017 and 2018 Plans was estimated on the date of each grant using the binomial option pricing model.

The share-based payment charge for 2023 is £511,060 (2022: £443,713). For details of the assumptions used in the valuation model, please see the financial statements of NIO Inc, which are publicly available from https://ir.nio.com/financials/annual-reports

21

Parent and ultimate parent undertaking

The company's immediate parent is NIO Nextev Limited, incorporated in Hong Kong People's Republic of China.

 The ultimate parent is NIO Inc, incorporated in Cayman Islands.

 The most senior parent entity producing publicly available financial statements is NIO Inc. These financial statements are available upon request from https://ir.nio.com/financials/annual-reports

 

As a wholly owned subsidiary, the company has taken advantage of the exemption in s33 of FRS102 not to disclose transactions with members of the Group.