Shanghai (ZXZC)- GAC NIO New Energy Automotive Co.,Ltd (GAC NIO), a joint venture between GAC Group and NIO, will close its pre-A round of financing in the second half of the year, and the capital amount and investors have been basically determined, according to a local media report.

“After the capital is put in place, GAC NIO will move faster to achieve substantial development,” a person with direct knowledge of the plan said.

GAC NIO has confirmed the news after being contacted by a local media outlet.

(HYCAN 007, photo source: HYCAN)

GAC Group and NIO initiated their strategic cooperation at the end of 2017, and founded in April 2018 GAC NIO, which involves a registered capital of 500 million yuan ($70,771,400). According to the business data query platform Tianyancha, 90% stake in the joint venture is evenly held by GAC Group, GAC NE, NIO and Hubei Changjiang NIO New Industrial Development Fund Partnership (L.P.).

Supported by the state-owned automaker and the high-profile startup, GAC NIO launched the BEV-focused brand “HYCAN”, and unveiled at the same time its first concept model. To help GAC NIO decrease costs, GAC Group offers its vehicle platform, manufacturing expertise and supplier resources. Meanwhile, the joint venture also draws from NIO the experience in branding and marketing.

On April 10, GAC NIO put its first mass-produced model, the HYCAN 007, onto the market. Staying true to the concept, the eye-catching all-electric model was priced between 262,600 yuan ($37,170) and 303,000 yuan ($42,887) after subsidy. However, only half a month later, the automaker announced the post-subsidy price of the BASE and the PLUS versions were reduced by 2,800 yuan ($396) and 3,000 yuan ($425) respectively.

It is reported in January that GAC NIO sought to raise from a new round of financing 1.5 billion yuan ($212,314,200), which was by happenstance equal to its pre-investment valuation.

Nonetheless, the fundraising were thwarted by the absence of 30 million yuan ($4,246,284) worth of registered capital which was supposed to be paid by NIO. The startup put the money in place last month, according to local media reports, sending the joint venture into the fast development lane.