2023 marks the 10th anniversary of the Belt and Road Initiative, and NIO, as one of the most influential new EV brands in China, has recently won the favor of Middle Eastern capital again.
*: Photo.comThe Middle East tycoon will make another move, and the $2.2 billion "bet" will become the largest shareholder of NIO
On December 18, NIO (NIOn，09866.HK) announced that it has entered into a partnership with CYVN Investments RSC Ltd(hereinafter referred to as "CYVN") signed a share subscription agreement, CYVN will invest US$2.2 billion in cash to subscribe for the company's additional 29.4 billion Class A ordinary shares, subscribed** of 7$50 shares. After the completion of the transaction, CYVN will hold approximately 20 of NIO in aggregate1% of the shares.
On the trading day before the announcement, NIO's U.S. stock price closed at 7$98. As soon as the news came out, the company's U.S. stocks rose more than 10% before trading.
According to NIO's announcement, CYVN's parent company, CYVN Holdings LLC (hereinafter referred to as CYVN Holdings), is a professional investment institution controlled by Abu Dhabi**, focusing on the field of advanced and intelligent mobility.
Previously, on June 20, NIO announced that it had received a strategic investment from CYVN Holdings, which was completed on July 12. At that time, the cyvn ended with 7$38.5 billion subscribed for the company's additional issuance of 8469550,000 Class A ordinary shares and 3$500 million for the transfer of 4013760,000 shares of the company. Upon completion of the transaction, CYVN now holds approximately 7% of NIO's shares.
The deal has improved NIO's balance sheet. The company's third-quarter financial report showed that cash and cash equivalents, restricted cash, short-term investments and long-term term deposits were RMB45.2 billion (US$6.2 billion) as of the end of September 2023, compared with RMB31.5 billion (US$4.3 billion) at the end of June.
According to NIO's 2022 annual report, Tencent (including Tencent Holdings, Image Frame Investment, Mount Putuo Investment, and Huang River Investment) is the company's largest institutional shareholder, holding 16,424960,000 Class A ordinary shares, representing a shareholding ratio of approximately 97%。The second largest institutional shareholder is baillie gifford, a veteran British institution, with a shareholding ratio of about 72%。Li Bin, the founder and CEO of the company, holds 3046780,000 Class A ordinary shares and 148,500,000 Class C ordinary shares, with a shareholding ratio of 105%, but due to the difference in voting rights of Class A and Class C ordinary shares, Li Bin controls a total of 442% of the voting power.
After the completion of this US$2.2 billion investment, CYVN will hold a total of about 20 percent of NIO1% of the shares, the number of shares held exceeded that of the founder Li Bin and became the largest shareholder of NIO. In response, NIO said that Li Bin is still the shareholder with the single largest voting right and has absolute control over the company.
Li Bin said in the announcement that with the strengthening of the balance sheet, NIO is fully prepared to strengthen its brand positioning, improve its sales and service capabilities, and make long-term investments in core technologies to cope with the increasingly fierce competition landscape, while continuing to improve its execution efficiency and systematization capabilities.
According to the latest delivery data released by NIO, the company has delivered a total of 14200,000 vehicles, a year-on-year increase of 331%, which has exceeded the delivery volume for the whole of 2022 by 12250,000 units. However, judging from the monthly data, NIO delivered 15,959 new cars in November, a slight decrease from the previous month.
In the first three quarters of 2023, NIO achieved a cumulative revenue of 3851.5 billion yuan, but the net profit is still a loss of 1535.2 billion yuan. From the perspective of single-quarter performance, the company's revenue in the third quarter was 19.1 billion yuan, a year-on-year increase of 4665%, an increase of 117 month-on-month36%；Gross margin was 8%, down 530 percentage points, an increase of 7 percentage points from the previous month. Among them, the gross profit margin of vehicle sales increased by 4 month-on-monthThe 8 percentage points to 11% were mainly due to the increase in the proportion of high-priced models, the decline in parts costs, the scale effect, and the refined management of sales policies.
On the 10th anniversary of the Belt and Road Initiative, Middle Eastern capital has accelerated its entry into China
2023 marks the 10th anniversary of the Belt and Road Initiative. Since the beginning of this year, the pace of Middle Eastern capital entering China has accelerated.
With $984 billion in assets under management, the Abu Dhabi Investment Authority (ADIA) is the largest sovereign** in the Middle East and the fourth largest sovereign wealth** in the world, according to the latest data from Global SWF. The Kuwait Investment Authority (KIA) is a close second, with $801 billion in assets under management. The top 10 Middle East sovereigns** also include Saudi Arabia's Public Investment (PIF), Qatar Investment Authority (QIA), and Dubai Investment Corporation (ICD), with assets under management of $700 billion, $429 billion, and $341 billion, respectively.
In the last two months alone, Abu Dhabi Investment Authority has participated in Inovance's participation in Inovance Technology (300124SZ), Jin Chengxin (603979SH), Xiangsheng Medical (688358SH), Tianyue Advanced (688234SH), Bank of Hangzhou (600926SH), Bank of Ningbo (002142SZ) and other listed companies, and Mubadala, which has just opened an office in Beijing, has also appeared in Longda Food (002726SZ).
On December 10, Kingdee International (00268.)HK) announced that it has secured a strategic investment of approximately US$200 million from the Qatar Investment Authority. In October, autonomous driving company Pony.ai announced that it had signed a partnership agreement with the Abu Dhabi Investment Authority to join the Abu Dhabi Intelligent Driving Vehicle Industry Cluster (S**I) under construction in Masdar City.
According to Choice data, as of the end of the third quarter of this year, the Abu Dhabi Investment Authority (Abu Dhabi Investment Authority) appeared in the list of the top ten shareholders of 24 A-share listed companies, of which Tonghua Dongbao (600867.) held more than 1% of the sharesSH), investment surplus (001914sz）。
The Kuwait Investment Authority appears in the list of the top 10 shareholders of 27 A-share listed companies, of which Mengsheng Electronics (688311.) holds more than 2% of the sharesSH), crystal special equipment (688084SH), Fangsheng Pharmaceutical (603998SH), and nine other companies also hold more than 1% of the shares.
At the exchange level, the Shanghai Stock Exchange signed a memorandum of understanding with the Dubai Financial Market on November 20 to jointly explore the development of ESG and sustainability-related products to meet the needs of both market participants. The two sides will also jointly explore the development of cross-border indices, ETFs and other financial products to provide richer and more convenient capital market services.
On December 10 and 13, the Shenzhen Stock Exchange signed a memorandum of understanding with the Saudi Exchange Group (Saudi Tadawul Group) and the Abu Dhabi Exchange. The Shenzhen Stock Exchange said that it will work with the Saudi Exchange Group to study and promote cooperation in indexes, ** and REITs, jointly build a China-Saudi Arabia cross-border capital service mechanism based on the Shenzhen Stock Exchange's V-NEXT platform, and jointly study and explore cross-border financing mechanisms for listed companies such as ETF product interconnection and depositary receipts with the Abu Dhabi Exchange, so as to promote the participation of market entities on both sides in cross-border investment.