NIO Announces Entry into Definitive Agreements for Investments in NIO China
April 29 2020 - 2:50AM
NIO Inc. (“NIO” or the “Company”) (NYSE: NIO), a pioneer in China’s
premium smart electric vehicle market, today announced that it
entered into definitive agreements for investments in NIO China
with a group of investors (collectively, the “Strategic Investors”)
led by Hefei City Construction and Investment Holding (Group) Co.,
Ltd., CMG-SDIC Capital Co., Ltd., and Anhui Provincial Emerging
Industry Investment Co., Ltd.
Under the definitive agreements, the Strategic
Investors will invest an aggregate of RMB7 billion in cash into NIO
(Anhui) Holding Ltd., the legal entity of NIO China. NIO will
inject its core businesses and assets in China, including vehicle
research and development, supply chain, sales and services and NIO
Power (the “Asset Consideration”), into NIO China. The Asset
Consideration is valued at RMB17.77 billion, as calculated based on
85% of the average market value of NIO Inc. over the thirty public
trading days preceding April 21, 2020. Further, NIO will invest
RMB4.26 billion in cash into NIO China. Upon the completion of the
investments, NIO will hold 75.9% of controlling equity interests in
NIO China, and the Strategic Investors will collectively hold the
remaining 24.1%.
The Company expects the closing of the
investments to take place in the second quarter of 2020, subject to
the satisfaction of customary closing conditions. The Strategic
Investors and NIO will each inject cash into NIO China in five
installments, namely (i) RMB3.5 billion and RMB1.278 billion
respectively within five business days of the satisfaction of
closing conditions, (ii) RMB1.5 billion and RMB1.278 billion
respectively on or prior to June 30, 2020, (iii) RMB1 billion and
RMB0.852 billion respectively on or prior to September 30, 2020,
(iv) RMB0.5 billion and RMB0.426 billion respectively on or prior
to December 31, 2020, and (v) RMB0.5 billion and RMB0.426 billion
respectively on or prior to March 31, 2021. Moreover, the Asset
Consideration shall be injected into NIO China within one year of
closing.
NIO China will establish its headquarters in the
Hefei Economic and Technological Development Area (HETA), where the
Company’s main manufacturing hub is located, for its business
operation, research and development, sales and services, supply
chain and manufacturing functions. NIO will collaborate with the
Strategic Investors and HETA to develop NIO China’s business and to
support the accelerated development of the smart electric vehicle
sectors in Hefei in the future.
The investment is another important milestone of
NIO for its long-term growth. After receiving the investments from
the Strategic Investors, NIO will have more sufficient funds to
support its business development, to enhance its leadership in the
products and technologies of smart electric vehicles and to offer
services exceeding users’ expectation. Additionally, the Company
believes the launch of NIO China headquarters in Hefei enables NIO
to improve its operational efficiency and to sustain its growth and
competitiveness in the long run.
This press release is not an exhaustive summary
of the terms of the definitive agreements. Further information
regarding the investments and the terms of the definitive
agreements will be included in NIO’s subsequent filings with the
SEC, including its annual report on Form 20-F for the fiscal year
ended December 31, 2019 (the “2019 Annual Report”). The Company is
preparing the related disclosure in and translation of the
documents to be filed with the 2019 Annual Report in connection
with the definitive agreements. The Company plans to rely on
the 15-day extension period for filing its 2019 Annual Report under
Rule 12b-25 and will file the 2019 Annual Report by May 15, 2020 as
permitted under rules of the Securities and Exchange
Commission.
About NIO Inc.
NIO Inc. is a pioneer in China’s premium smart
electric vehicle market. Founded in November 2014, NIO’s mission is
to shape a joyful lifestyle by offering premium smart electric
vehicles and being the best user enterprise. NIO designs, jointly
manufactures, and sells smart and connected premium electric
vehicles, driving innovations in next generation technologies in
connectivity, autonomous driving and artificial intelligence.
Redefining the user experience, NIO provides users with
comprehensive, convenient and innovative charging solutions and
other user-centric services. NIO began deliveries of the ES8, a
7-seater high-performance premium electric SUV in China in June
2018, and its variant, the six-seater ES8, in March 2019. NIO
officially launched the ES6, a 5-seater high-performance premium
electric SUV, in December 2018 and began deliveries in June 2019.
NIO officially launched the EC6, a 5-seater smart premium electric
Coupe SUV, in December 2019 and plans to commence deliveries in
2020.
Safe Harbor Statement
This press release contains statements that may
constitute “forward-looking” statements pursuant to the “safe
harbor” provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These forward-looking statements can be identified by
terminology such as “will,” “expects,” “anticipates,” “aims,”
“future,” “intends,” “plans,” “believes,” “estimates,” “likely to”
and similar statements. Among other things, quotations from
management in this announcement, as well as NIO’s strategic and
operational plans, contain forward-looking statements. NIO may also
make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission (the “SEC”),
in its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including statements about NIO’s beliefs, plans
and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: NIO’s strategies; NIO’s future business
development, financial condition and results of operations; NIO’s
ability to develop and manufacture a car of sufficient quality and
appeal to customers on schedule and on a large scale; its ability
to grow manufacturing in collaboration with partners; its ability
to provide convenient charging solutions to its customers; its
ability to satisfy the mandated safety standards relating to motor
vehicles; its ability to secure supply of raw materials or other
components used in its vehicles; its ability to secure sufficient
reservations and sales of the ES8 and ES6; its ability to control
costs associated with its operations; its ability to build the NIO
brand; general economic and business conditions globally and in
China and assumptions underlying or related to any of the
foregoing. Further information regarding these and other risks is
included in NIO’s filings with the SEC. All information provided in
this press release is as of the date of this press release, and NIO
does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
For more information, please visit:
http://ir.nio.com
For investor and media inquiries, please
contact:
NIO Inc.Investor RelationsTel:
+86-21-6908-2018Email: ir@nio.com
Source: NIO
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