According to the report of “Kechuangban Daily”, NIO has disclosed a significant progress in the strategic investment agreement in Hefei, and the capital injection has been substantially completed as planned.
As of June 29th, both parties have completed a capital injection of RMB 7.356 billion as planned. NIO has raised more than RMB 10 billion in financing this year.
Translated into English: The funds have been received.
Let’s briefly review the Hefei strategic investment agreement:
On April 29th, NIO officially announced that the agreement for NIO’s China headquarters to settle in Hefei has been signed. Investors such as Hefei Construction Investment Holding (Group) Co., Ltd., China National Investment and Credit Guarantee Corp. , Ltd. and Anhui Province High and New Technology Industry Investment Co., Ltd. will invest RMB 7 billion in NIO China.
NIO will inject core businesses and related assets in China including vehicle development, supply chain and manufacturing, sales and services, energy services and other aspects to its legal entity NIO (Anhui) Holding Co., Ltd. Based on 85% of the average market value of NIO in the 30 trading days before April 21, 2020, the valuation of the above businesses and assets is RMB 17.77 billion.
NIO will also invest RMB 4.26 billion in NIO China. After the transaction is completed, NIO will hold 75.9% of NIO China’s shares, and the strategic investors will collectively hold 24.1% of the shares.
As of the time of writing, NIO’s stock has risen by 1.88% in pre-market trading.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.