NY-listed Chinese leading smart electric vehicle company NIO Inc on Tuesday said that its fully-owned unit NIO (Anhui) Holding Co Ltd has received a cash injection of 4.8 billion yuan ($679 million) in line with an agreed payment schedule with strategic investors.
In April this year, NIO had forged an agreement with a slew of investors including Hefei Construction Investment & Holding, CMG-SDIC Fund and Anhui Provincial Emerging Industry Investment to raise $1.04 billion.
As part of the deal, NIO Anhui will receive another 2 million yuan ($282,745) in cash before September 30, 2020. The company has already secured 2.556 billion yuan ($361 million) from its parent company NIO in two installments.
Upon the completion of the transaction, NIO China will retain 75.885 per cent stake in NIO Anhui, while the remaining 24.115 per cent stake will be retained by investors..
“The strategic investments in NIO China will provide sufficient funds to support NIO’s continuous efforts to lead the technology and product development of the premium smart electric vehicles, and to offer the best user experience and services,” said William Bin Li, founder, chairman and chief executive officer of NIO, in the statement.
“In the near term, we will focus on improving our production capacity and expanding our network coverage to further accelerate our growth. In the long term, we remain committed to building the best user enterprise for NIO to share a joyful life and to grow together with our users.”
Founded in November 2014, NIO designs and manufactures new generation smart EVs. It moved its headquarter from Shanghai to Hehui in February this year, and has divisions in Beijing, Shanghai, London, Munich and San Jose. The company got listed in New York in 2018.
Its portfolio investors comprise Temasek Holdings, Government of Singapore Investment Corp, Baillie Gifford & Co, IDG Capital, Hillhouse Capital, Warburg Pincus, CICC. Capital, Lenovo Capital, Tencent, Baidu, Lenovo Capital, among others.