NIO Announces RMB3.3 Billion Investment in NIO China from Strategic Investors
NIO Inc. has announced a significant investment deal for its PRC subsidiary, NIO China. Strategic investors will invest RMB3.3 billion in cash, while NIO will invest RMB10 billion. Upon completion, NIO will hold an 88.3% controlling equity interest in NIO China, with strategic investors and existing shareholders holding the remaining 11.7%.
The investment will be made in two installments, with 70% due by the end of November 2024 and the remaining 30% by the end of December 2024. NIO also has the option to invest an additional RMB20 billion by December 31, 2025, under the same terms.
This investment is expected to enhance NIO's balance sheet, positioning the company to maintain its advantages in technology, products, services, and user community, while promoting its multi-brand strategy and market expansion.
NIO Inc. ha annunciato un significativo accordo di investimento per la sua sussidiaria in Cina, NIO China. Investitori strategici investiranno 3,3 miliardi di RMB in denaro, mentre NIO investirà 10 miliardi di RMB. Al termine dell'operazione, NIO deterrà un 88,3% di partecipazione azionaria di controllo in NIO China, con investitori strategici e azionisti esistenti che detengono il rimanente 11,7%.
L'investimento sarà effettuato in due rate, con il 70% dovuto entro la fine di novembre 2024 e il restante 30% entro la fine di dicembre 2024. NIO ha anche la possibilità di investire ulteriori 20 miliardi di RMB entro il 31 dicembre 2025, alle stesse condizioni.
Si prevede che questo investimento migliori il bilancio di NIO, posizionando l'azienda per mantenere i suoi vantaggi in tecnologia, prodotti, servizi e comunità di utenti, mentre promuove la sua strategia multi-brand e l'espansione del mercato.
NIO Inc. ha anunciado un acuerdo de inversión significativo para su subsidiaria en China, NIO China. Inversores estratégicos invertirán 3,3 mil millones de RMB en efectivo, mientras que NIO invertirá 10 mil millones de RMB. Una vez completado, NIO tendrá un 88,3% de participación accionaria de control en NIO China, con inversores estratégicos y accionistas existentes poseyendo el 11,7% restante.
La inversión se realizará en dos etapas, con el 70% a pagar para finales de noviembre de 2024 y el 30% restante para finales de diciembre de 2024. NIO también tiene la opción de invertir un adicional de 20 mil millones de RMB antes del 31 de diciembre de 2025, bajo los mismos términos.
Se espera que esta inversión mejore el balance de NIO, posicionando a la empresa para mantener sus ventajas en tecnología, productos, servicios y comunidad de usuarios, mientras promueve su estrategia de múltiples marcas y la expansión del mercado.
NIO Inc.는 중국 자회사인 NIO China에 대한 중요한 투자 거래를 발표했습니다. 전략적 투자자들이 33억 위안을 현금으로 투자할 예정이며, NIO는 100억 위안을 투자합니다. 거래 완료 후, NIO는 NIO China에서 88.3%의 지배적 지분을 보유하게 되며, 전략적 투자자와 기존 주주들이 나머지 11.7%를 보유하게 됩니다.
이 투자금은 두 차례에 걸쳐 지급되며, 70%는 2024년 11월 말까지, 나머지 30%는 2024년 12월 말까지 지급됩니다. NIO는 또한 같은 조건으로 2025년 12월 31일까지 추가로 200억 위안을 투자할 수 있는 옵션이 있습니다.
이 투자는 NIO의 재무 상태를 개선할 것으로 예상되며, 기술, 제품, 서비스 및 사용자 커뮤니티에서의 이점을 유지하고, 다중 브랜드 전략과 시장 확장을 촉진하는 데 도움이 될 것입니다.
NIO Inc. a annoncé un accord d'investissement significatif pour sa filiale en Chine, NIO China. Des investisseurs stratégiques investiront 3,3 milliards de RMB en espèces, tandis que NIO investira 10 milliards de RMB. Une fois l'accord finalisé, NIO détiendra un 88,3 % d'intérêt de contrôle en actions dans NIO China, les investisseurs stratégiques et les actionnaires existants détenant les 11,7 % restants.
L'investissement sera réalisé en deux versements, avec 70 % dû d'ici la fin novembre 2024 et les 30 % restants d'ici la fin décembre 2024. NIO a également la possibilité d'investir un montant supplémentaire de 20 milliards de RMB d'ici le 31 décembre 2025, selon les mêmes conditions.
On s'attend à ce que cet investissement renforce le bilan de NIO, positionnant l'entreprise pour maintenir ses avantages en matière de technologie, de produits, de services et de communauté d'utilisateurs, tout en promouvant sa stratégie multi-marques et son expansion sur le marché.
NIO Inc. hat ein bedeutendes Investitionsabkommen für ihre Tochtergesellschaft in China, NIO China, angekündigt. Strategische Investoren werden 3,3 Milliarden RMB in bar investieren, während NIO 10 Milliarden RMB investieren wird. Nach Abschluss wird NIO einen 88,3% kontrollierenden Anteil an NIO China halten, während strategische Investoren und bestehende Aktionäre die verbleibenden 11,7% halten.
Die Investition erfolgt in zwei Raten, wobei 70% bis Ende November 2024 fällig sind und die restlichen 30% bis Ende Dezember 2024. NIO hat zudem die Option, bis zum 31. Dezember 2025 zusätzlich 20 Milliarden RMB unter denselben Bedingungen zu investieren.
Diese Investition wird voraussichtlich die Bilanz von NIO verbessern und das Unternehmen in die Lage versetzen, seine Vorteile in Technologie, Produkten, Dienstleistungen und Benutzer-Community zu bewahren, während sie ihre Multi-Brand-Strategie und Markterweiterung fördert.
- Strategic investors to inject RMB3.3 billion in cash into NIO China
- NIO to invest RMB10 billion in cash into NIO China
- NIO will maintain 88.3% controlling equity interest in NIO China after the investment
- Option for NIO to invest an additional RMB20 billion by December 31, 2025
- Enhanced balance sheet to support NIO's long-term advantages and growth strategy
- Dilution of NIO's equity stake in NIO China from 92.1% to 88.3%
Insights
This RMB3.3 billion investment from strategic investors, coupled with NIO's own RMB10 billion injection, significantly bolsters NIO China's financial position. The deal structure, maintaining NIO's 88.3% controlling interest, is a positive sign, allowing the company to retain decision-making power while bringing in external capital.
The potential for an additional RMB20 billion investment by NIO through 2025 provides flexibility for future expansion. This cash infusion strengthens NIO's balance sheet, potentially accelerating R&D, production scaling and market expansion efforts in the competitive EV landscape.
Investor confidence is evident, which could positively impact NIO's stock performance. However, the dilution of NIO's stake from 92.1% to 88.3% should be noted. Overall, this deal enhances NIO's financial stability and growth prospects in the near to medium term.
This investment marks a significant vote of confidence in NIO's business model and growth potential. The involvement of government-backed funds (Hefei Jianheng and Anhui Provincial) suggests strong local support, which can be important in navigating China's regulatory landscape and securing future partnerships.
The multi-brand strategy mentioned could be a game-changer, allowing NIO to target different market segments and potentially increase market share. This approach has proven successful for traditional automakers and could help NIO compete more effectively against both domestic and international EV manufacturers.
The emphasis on maintaining advantages in technology, products, services and user community indicates a holistic approach to growth. This strategy, backed by substantial funding, positions NIO well to capitalize on the expanding global EV market and potentially improve its competitive stance against rivals like Tesla and domestic competitors.
SHANGHAI, Sept. 29, 2024 (GLOBE NEWSWIRE) -- NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) (“NIO” or the “Company”), a pioneer and a leading company in the global smart electric vehicle market, today announced that it has entered into definitive agreements for investment in NIO Holding Co., Ltd., a PRC subsidiary in which it holds
In addition to the NIO Investment Amount, NIO also has the right to invest an additional RMB20 billion to subscribe for additional shares in NIO China by December 31, 2025 based on the same price and terms of the Investment Transaction.
The Investment Transaction is subject to regulatory and internal approvals, as well as the satisfaction of customary closing conditions. The Strategic Investors and NIO will each inject cash into NIO China in two installments, with
This investment not only demonstrates the strategic investors’ firm support for the high-quality development of the electric vehicle industry but also underscores their strong recognition of NIO’s unique values and industry leadership. With an enhanced balance sheet, NIO is strategically positioned to maintain its long-term advantages in technology, products, services, and user community, promote its multi-brand strategy and penetrate broader markets, and propel the Company into the next stage of sustainable growth.
About NIO Inc.
NIO Inc. is a pioneer and a leading company in the global smart electric vehicle market. Founded in November 2014, NIO aspires to shape a sustainable and brighter future with the mission of “Blue Sky Coming”. NIO envisions itself as a user enterprise where innovative technology meets experience excellence. NIO designs, develops, manufactures and sells smart electric vehicles, driving innovations in next-generation core technologies. NIO distinguishes itself through continuous technological breakthroughs and innovations, exceptional products and services, and a community for shared growth. NIO provides premium smart electric vehicles under the NIO brand, and family-oriented smart electric vehicles through the ONVO brand.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. NIO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in announcements, circulars or other publications made on the websites of each of The Stock Exchange of Hong Kong Limited (the “SEHK”) and the Singapore Exchange Securities Trading Limited (the “SGX-ST”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about NIO’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: NIO’s strategies; NIO’s future business development, financial condition and results of operations; NIO’s ability to develop and manufacture vehicles of sufficient quality and appeal to customers on schedule and on a large scale; its ability to ensure and expand manufacturing capacities including establishing and maintaining partnerships with third parties; its ability to provide convenient and comprehensive power solutions to its customers; the viability, growth potential and prospects of the battery swapping, BaaS, and NIO Assisted and Intelligent Driving and its subscription services; its ability to improve the technologies or develop alternative technologies in meeting evolving market demand and industry development; NIO’s ability to satisfy the mandated safety standards relating to motor vehicles; its ability to secure supply of raw materials or other components used in its vehicles; its ability to secure sufficient reservations and sales of its vehicles; its ability to control costs associated with its operations; its ability to build its current and future brands; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in NIO’s filings with the SEC and the announcements and filings on the websites of each of the SEHK and SGX-ST. All information provided in this press release is as of the date of this press release, and NIO does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
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FAQ
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