On September 29th, NIO announced a new round of capital increase from strategic investors.
Specifically, it has signed strategic investment agreements with three existing shareholders of NIO Holdings Limited (hereinafter referred to as "NIO China") - Hefei Jianheng New Energy Vehicle Investment Fund Partnership Enterprise (Limited Partnership), Anhui High tech Industry Investment Co., Ltd., and Guotou Investment Management Co., Ltd.
According to the agreement, strategic investors will subscribe to NIO China's newly issued shares with a cash capital increase of 3.3 billion yuan, and NIO will also invest 10 billion yuan in cash to subscribe to NIO China's newly issued shares.
This is not the first time NIO has "joined hands" with Anhui State owned Assets.
In 2019, NIO faced market skepticism due to changes in tram subsidy policies and issues with car quality, resulting in a decline in sales and operational difficulties. In the end, after intensive research and evaluation, the government of Hefei, Anhui chose to "hold hands" with NIO and provide it with a "life-saving fund" of 7 billion yuan.
With the accelerated development of new energy vehicles in China, NIO's entry quickly established the reputation of Hefei's new energy vehicle industry. According to data, by the end of last year, the revenue of enterprises in the Hefei new energy vehicle industry cluster had reached 350 billion yuan, and the annual production of new energy vehicles reached 746000 units, accounting for over 8% of the national total, ranking among the top 5 cities in China in terms of output.
In addition to its investment in Hefei, NIO has raised more than ten funds since its establishment, with a publicly disclosed total financing of over 100.8 billion yuan. The continuous support from the funding side has also ensured NIO's investment in battery swapping stations, new car research and development, technology iteration, and other areas.
As of the end of June 2024, NIO's cash and cash equivalents, restricted cash, short-term investments, and long-term term deposits amounted to 41.6 billion yuan, of which cash and equivalents were 24.652 billion yuan.
NIO Chairman Li Bin once revealed that if NIO can achieve a monthly sales volume of 30000 and a gross profit margin of 20%, the brand can achieve profitability.
Since May, NIO has sold over 20000 vehicles for four consecutive months, and with the launch of the new brand Ledao, the company's delivery volume is expected to increase again. In terms of gross profit, NIO achieved a 12.2% vehicle gross profit margin in the second quarter, an increase of 6 percentage points year-on-year. Li Bin once said that the gross profit margin of Ledao would also be satisfactory to the market. Coupled with the increase in sales, NIO is rapidly shortening its distance from profitability.