Nio and Hefei Municipal Government reached an agreement today that Nio's China headquarters will be settled in Hefei. At the signing ceremony, the two parties also proposed that by 2025 Nio will be listed in China's "SSE Star Market" (Sci-Tech innovAtion boaRd), which was launched in the middle of last year, according to Yicai.com.

Hefei City Government said today that major industrial projects in Hefei City held a remote signing ceremony at the Jianghuai Nio plant in Hefei. The signing involved 8 projects in new energy vehicles, integrated circuits, medical health, industrial Internet, and equipment manufacturing. The total investment is 102 billion yuan.

Among them, the Nio China headquarters project includes the establishment of the Nio China headquarters in Hefei, the establishment of R&D, sales, and production bases, and the establishment of a China headquarters operating system centered on Hefei.

Nio will invest 1 billion yuan in the planning and construction of its headquarters and R & D base, and 1.5 billion yuan in the second production base.

According to the data disclosed by the Hefei Municipal Government, Nio expects revenue to reach 14.8 billion yuan in 2020 and plans to list 6 to 8 models in 2024, with revenue reaching 120 billion yuan. In addition, the two parties also proposed that the signing ceremony will be completed by 2025. Land on the science and technology board.

Nio's China headquarters eventually settled in Hefei. "It should be that after the failure of negotiations with the government including Beijing Yizhuang International and Wuxing District, Huzhou City, Zhejiang Province, Li Bin made a relatively reasonable choice," Yicai.com quoted an analyst who asked not to be named.

As early as May 2019, Nio signed a framework agreement with Beijing Yizhuang International Investment Development Co., Ltd. ("Yizhuang SDIC").

According to this agreement, Nio will set up a new entity "Nio China" in the Beijing Economic and Technological Development Zone and inject specific businesses and assets into "Nio China". Yizhuang SDIC will, through its designated investment company or jointly with other investors, "Nio China contributed RMB 10 billion in cash to acquire the non-controlling shareholders' equity in" Nio China ".

In addition, Yizhuang SDIC will also assist "Nio China" in building or introducing third parties to jointly build Nio China's advanced manufacturing base and produce the company's second-generation platform models.

At that time, Nio had stated that Nio would adopt the dual headquarters model in the future.

However, since the framework agreement, the above news has not progressed. Subsequently, the media broke out that Nio had negotiated with the Wu Xing government for cooperation, but the local government later responded that "the further negotiations have been stopped in view of the excessive assessment risk."

The high operating cost and small scale make Nio have to choose various channels to obtain funds to supplement the cash flow. Since last year, there have been many news that several traditional car companies are competing for Nio. It is reported that Geely will invest in Nio. However, none of these messages have been confirmed for the time being.

The analyst, who asked not to be named, believes that Nio's future financing will be relatively easy if an agreement is reached with the Hefei government and the government endorses it.

However, he also mentioned that even so, Nio still needs to expand its scale and market as soon as possible to reduce costs and enter a more sustainable operating track.

With the signing of the above agreement, NioEC6 also held a mass production launching ceremony at the JAC Nio plant. The EC6 is Nio's third mass-produced model. It is positioned as an electric smart coupe SUV, with a performance NEDC of 615 kilometers.

According to the plan, EC6 is expected to announce the price and configuration in July 2020, and delivery will begin in September.