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Nio today announced that it has entered into definitive agreements for investment in Nio Holding Co., Ltd., a PRC subsidiary in which it holds 92.1 percent controlling equity interest (“Nio China”), with Hefei Jianheng New Energy Automobile Investment Fund Partnership (Limited Partnership), Anhui Provincial Emerging Industry Investment Co., Ltd. and CS Capital Co., Ltd. (collectively, the “Strategic Investors”), pursuant to which the Strategic Investors will invest an aggregate of RMB3.3 billion in cash (the “Strategic Investment Amount”) to subscribe for newly issued shares of Nio China.

Concurrently, Nio will invest an aggregate of RMB10 billion in cash (the “Nio Investment Amount”) to subscribe for newly issued shares of Nio China (collectively, the “Investment Transaction”).

Upon completion of the Investment Transaction, Nio will hold 88.3 percent of controlling equity interest in Nio China, while the Strategic Investors together with the other existing shareholders will collectively hold the remaining 11.7 percent of equity interest in Nio China.

In addition to the Nio Investment Amount, Nio also has the right to invest an additional RMB20 billion to subscribe for additional shares in Nio China by December 31, 2025 based on the same price and terms of the Investment Transaction.

The Investment Transaction is subject to regulatory and internal approvals, as well as the satisfaction of customary closing conditions. The Strategic Investors and Nio will each inject cash into Nio China in two installments, with 70 percent of the Strategic Investment Amount and Nio Investment Amount to be made by the end of November 2024, with the remaining 30 percent to be made by the end of December 2024.

This investment not only demonstrates the strategic investors' firm support for the high-quality development of the electric vehicle industry but also underscores their strong recognition of Nio's unique values and industry leadership. With an enhanced balance sheet, Nio is strategically positioned to maintain its long-term advantages in technology, products, services, and user community, promote its multi-brand strategy and penetrate broader markets, and propel the Company into the next stage of sustainable growth.

Nio says buyback of Nio China shares has nothing to do with the latter's IPO