Unit of Chinese EV maker Nio receives US$471 million in new financing for new models

a Chinese subsidiary electric vehicle (EV) assembler Nio It has received 3.3 billion yuan (US$471 million) in new capital from a consortium of investors backed by the government of Hefei in China’s eastern Anhui province, giving the automaker a much-needed boost to develop its products and technologies.

The Shanghai-based company said on Sunday it would make a profit of 10 billion yuan to subscribe to newly issued shares of subsidiary Nio China, but its stake in the unit would fall from 92.1 percent to 88.3 percent.

Nio said that following the share sale, it will increase the ownership share of Hefei Jianheng New Energy Automobile Investment Fund Partnership, Anhui Province Emerging Industry Investment and CS Capital, as well as other existing shareholders of Nio China, from 7.9 percent to 11.7 percent.

With a “strengthened balance sheet,” Nio will be “strategically positioned” to maintain its advantages in technology, products, services and user community, promote a multi-brand strategy, succeed in broader markets and “take the company to the next level” in both Hong Kong and Hong Kong, the statement said. It was stated that Nio, which is also traded in New York, is “the key to sustainable growth”.

He added that the Shanghai-based automaker has the right to subscribe for another 20 billion yuan worth of shares in the subsidiary by the end of 2025.