NIO China Secures 3.3 Billion Yuan from Key Investors

NIO China Receives Strategic Investment of 3.3 Billion Yuan

NIO announced on September 29th, that NIO China has received strategic investment of RMB3.3 billion from three existing shareholders backed by Hefei government.

Strategic Investment Details

NIO has reached an agreement with Hefei Jianheng New Energy Automobile Investment Fund Partnership, Anhui Provincial Emerging Industry Investment Co Ltd and CS Capital Co Ltd for an investment. According to the agreement, the three investors will invest 3.3 billion yuan on subscribing the newly issued shares in NIO China.

Consistent Strong Sales Performance and Promising Q2 Financial Report

Since May of this year, NIO has sold over 20,000 vehicle for four consecutive months, and successfully launched its sub-brand ONVO’s first model ONVO L60. NIO’s 2024 Q2 financial report shows that, the company gained a total revenue of 17.45 billion yuan, with a gross margin of 12.2% for whole vehicles.

Positive Ratings from Investment Banks

Recently, several investment banks have raised their expectations for NIO. JPMorgan Chase’s rating for NIO has been upgraded to overweight; Deutsche Bank has increased its target price for NIO's Hong Kong stock to 72 Hong Kong dollars from previous 65.5 Hong Kong dollars.

The funding from the three strategic investors would serve as a strong backing for NIO, and will definitely boost NIO’s business expansion.