AutoBeta(AutoBeta.net)02/18 Report--

According to media reports, Geely plans to invest $300 million (about RMB 2.1 billion yuan) in NIO Automobile, and points out that Geely will account for less than 10% of NIO Automobile's shares after this round of investment according to the convertible bond accounting of $3.07 just carried out in the primary market, and Geely is expected to become the third largest shareholder of NIO Automobile after the dilution of existing shareholders.

In response to relevant reports, Yang Xueliang, vice president of Geely Automobile Group, said today that "I don't know about this matter and don't comment on market rumors", and NIO Automobile also responded that "no comment, all financing related to announcements".

The lack of financial resources is nothing new. The first coupe EP7 is still missing, and only the SUV EC6 was brought on NIO Day 2019. If Geely shares NIO, NIO follow-up funding problems also have a certain mitigation effect.

Geely Automobile is the first brother of domestic independent brands, successively acquired Volvo, Proton and Daimler shares, but in the high-end pure electric aspect is still blank, although launched geometric cars, but sales volume is not very optimistic. If Geely takes a stake in NIO, Geely's research and development of high-end pure electric vehicles will also reduce most of the time.

According to the contents of the responses from both parties, neither party has made a direct denial. For Geely Automobile Investment Wei Lai related matters, if there is any follow-up progress, foreign media will continue to follow up the report.

Founded in November 2014, NIO Automobile owns a variety of models such as NIO ES6, NIO ES8, NIO EP9, etc. With a 5-year development history, NIO Automobile has become a well-known enterprise of new energy vehicles in China and has the title of "Domestic Tesla" in China. Although Wei Lai Automobile is still the strongest among the new forces in car building, Wei Lai's lack of money is no longer an open secret.

On January 15, there were media reports that NIO Automobile was negotiating with automobile manufacturing companies such as GAC Group, among which GAC Group planned to invest US $1 billion in shares. After the news was exposed, the share price of NIO Automobile was bullish for days, but contrary to expectations, GAC Group issued a clarification announcement the next day saying that it was indeed discussing financing matters with NIO Automobile, but it was still in the early stage, and the financing amount would not exceed US $150 million.

Although the financing of NIO Automobile and GAC Group has not yet been reached, in the last half month, NIO Automobile has obtained a financing project of US $200 million. Although the financing of US $200 million is still a drop in the bucket for NIO Automobile, it also solves the urgent need of NIO Automobile.

On February 6, NIO announced the completion of a $100 million convertible bond financing project; on February 14, NIO issued another announcement announcing the completion of a $100 million convertible bond financing project, both funded by unrelated Asian investment funds. The four Asian investment funds subscribed to are all pure financial investors, according to NIO Auto.

In addition, NIO Automobile, which was supposed to pay wages on February 8 this year, did not pay as scheduled. NIO Automobile said that the delay in the issuance date was due to the delay in the resumption of work caused by the epidemic, thus bringing about changes in the rhythm of enterprise management. At the same time, the plan for employees to voluntarily exchange 13 salaries for stocks will be launched. Employees can choose to receive wages or company stocks within the corresponding amount.

In terms of sales volume, in the past January, NIO Automobile delivered 1598 new vehicles in January, down 11.5% year-on-year, including 1493 ES6 vehicles and only 105 ES8 vehicles. As for the reasons for the decrease in delivery volume, NIO said it was related to the decrease in effective working days caused by the Spring Festival holiday, and the decline in sales performance due to the outbreak of Xinguan pneumonia and extended holidays.

Affected by the epidemic situation, a number of automobile enterprises extended their return to work until mid-late February, NIO Automobile is no exception. At present, NIO Automobile has announced the resumption of work, January sales decline is beyond doubt, the epidemic situation is expected to NIO Automobile February production and sales performance will be greater.

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