With the launch of this round of financing at the end of the year and the mass production of 150kWh batteries next year, NIO is not only expected to achieve capital recovery, but also is expected to boost market confidence with battery technology.
Under the influence of recent good news, NIO (NIOn、9866.HK) stock price rose significantly - U.S. stocks on December 18 ***464% to 8$35;Hong Kong stocks reported **5 on December 1970% to 64HK$95.
On December 17, Li Bin, founder, chairman and CEO of NIO, said on social platforms that after 14 hours and 01 minutes of hard work, the final result of the 150kWh battery life test reached 1044 kilometers with 3% of the battery left, and all models on sale can be flexibly upgraded to adapt to the 150kWh battery through NIO's battery swap system.
The battery was launched in January 2021 with a semi-solid-state battery solution. The research report of China Galaxy ** pointed out that semi-solid-state batteries that can be compatible with current materials and industrial systems are the preferred solution before the large-scale application of all-solid-state batteries. NIO's 150kWh battery is expected to be mass-produced in April next year, which will be suitable for all models, which will help enhance the competitiveness of the company.
on the Internet.
NIO announced on December 18 that it had entered into a share subscription agreement with Abu Dhabi-based investment firm CYVN Holdings through its affiliate CYVN. Under the agreement, CYVN will invest US$2.2 billion to subscribe for the company's new issuance of 29.4 billion shares of Class A common stock.
Following the completion of US$1.1 billion (about 1.1 billion) through private placement of new shares and transfer of old shares in July2.5 billion shares) after the strategic investment, CYVN will hold 201% of NIO shares, a total of 41.9 billion shares. At the close of the transaction in December, if CYVN holds at least 15% of the issued shares, it will have the right to nominate two directors to NIO's board of directors.
This investment demonstrates our confidence in NIO's unique positioning and competitiveness in the global smart electric vehicle industry." said Jassim Al Zaabi, Chairman and Managing Director of CYVN. As a long-term strategic partner, CYVN will support NIO's product innovation, technological breakthroughs, and international market expansion.
After the completion of this transaction, it will hold a total of 20The 1% stake in the CCYVN will surpass Li Bin to become the largest shareholder. In this regard, Li Bin responded that first, he transferred 50 million shares to the user trust when he was listed, and now the equity table has not been reduced, which means that he has long been not the largest shareholder in the economic sense;Second, because of the super voting rights, their own voting rights are still the most, and there is little change at the shareholder voting level.
According to the 20-f documents disclosed by NIO in April, Li Bin holds about 17.9 billion companies**, including 0300 million Class A shares and 14.9 billion Class C shares, with a shareholding ratio of 105% and 442% voting rights. Class A ordinary shares have one vote and Class C ordinary shares have eight votes. Therefore, Li Bin's current voting rights are still the highest in the company.
According to the third quarterly report, NIO's revenue was RMB 1906.7 billion yuan (26US$1.3 billion), a year-on-year increase of 466%, an increase of 117 month-on-month4%；Adjusted net loss of 395.3 billion yuan (5.)US$4.2 billion), an expansion of 13% year-on-year and a quarter-on-quarter decrease of 274%。
Since NIO has yet to generate free cash flow, investors are worried about its balance sheet, and NIO's share price has not performed as well as the other two new EV makers – NIO's US stock **14 year-to-date36%, Li Auto (Li.o、2015.HK) and Xpeng Motors (XPEVn、9868.HK) rose by 6819% and 4406%。
As of September 30, NIO's cash and cash equivalents, restricted cash, short-term investments and long-term deposits totaled 45.2 billion yuan ($6.2 billion), up 13.7 billion yuan from the previous month. In addition to CYVN's US$1.1 billion equity investment, NIO also issued US$1 billion of convertible senior bonds in October.
With the launch of this round of financing at the end of the year and the mass production of 150kWh batteries next year, NIO is not only expected to achieve capital recovery, but also is expected to boost market confidence with battery technology. Li Bin said that with the improvement of its balance sheet, NIO will strengthen its brand positioning, enhance its sales and service capabilities, and make long-term investments in core technologies to cope with the increasingly fierce competitive landscape.
Currently, 19 of Barron's 32 U.S. stock analysts covering NIO have a rating of "one more than a month ago."
Text |Cao Yan
Edit |Yu Zhou
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