A subsidiary of Chinese electric vehicle (EV) assembler Nio has received RMB 3.3 billion ($471 million) in fresh capital from a consortium of investors backed by the government of Hefei in eastern China’s Anhui province, giving the carmaker a much-needed boost to develop its products and technologies, reports the South China Morning Post. The Shanghai-based company said in a statement on Sunday that it would also shell out 10 billion yuan to subscribe newly issued shares of the subsidiary, Nio China, but its holding in the unit would be reduced from 92.1% to 88.3%.
Following the share placement, Hefei Jianheng New Energy Automobile Investment Fund Partnership, Anhui Provincial Emerging Industry Investment and CS Capital, along with other existing shareholders of Nio China, will increase their ownership from 7.9% to 11.7%, Nio said.
With “an enhanced 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 “propel the company into the next stage of sustainable growth,” Nio, listed in both Hong Kong and New York, said in the statement.