Nio today announced that it has finalized agreements for an investment in NIO Holding Co., Ltd., its PRC subsidiary where it holds a 92.1% controlling equity interest (“NIO China”). The investment will come from Hefei Jianheng New Energy Automobile Investment Fund Partnership (Limited Partnership), Anhui Provincial Emerging Industry Investment Co., Ltd., and CS Capital Co., Ltd. (collectively referred to as the “Strategic Investors”).
These Strategic Investors are set to contribute a total of RMB 3.3 billion in cash (the “Strategic Investment Amount”) to acquire newly issued shares of NIO China.
In conjunction with the Strategic Investors, Nio will also invest RMB 10 billion in cash (the “Nio Investment Amount”) for additional shares in NIO China, culminating in a comprehensive Investment Transaction.
Upon completion, Nio will hold an 88.3% controlling interest in NIO China, while the Strategic Investors and other existing shareholders will collectively possess the remaining 11.7%.
Furthermore, Nio has the option to invest an additional RMB 20 billion to purchase more shares in NIO China by December 31, 2025, under the same pricing and terms as the current Investment Transaction.
The Investment Transaction is subject to regulatory and internal approvals and must meet customary closing conditions. Both Nio and the Strategic Investors will inject cash into NIO China in two phases, with 70% of the investments expected by the end of November 2024 and the remaining 30% by the end of December 2024.
This strategic investment not only highlights the unwavering support of the Strategic Investors for the electric vehicle industry’s high-quality development but also emphasizes their strong recognition of Nio’s unique values and market leadership.
With an improved balance sheet, Nio aims to sustain its long-term competitive edge in technology, products, services, and user community, while furthering its multi-brand strategy and expanding into broader markets, thereby positioning the company for the next stage of sustainable growth.
