34 C
Dubai
Thursday, June 20, 2024
spot_img

NIO Receives USD 1.1 Billion Investment from Abu Dhabi Sovereign Fund

[ad_1]

On June 20, NIO signed a share subscription agreement with CYVN Holdings, an investment institution in Abu Dhabi. According to the agreement, CYVN Holdings will make a total strategic investment of approximately US$1.1 billion in NIO through private placement of new shares and transfer of old shares.

Financial data show that in the first quarter, NIO’s revenue was 10.677 billion yuan, a year-on-year increase of 7.7%, and its net loss was 4.74 billion yuan, a year-on-year increase of 165.9%. In terms of gross profit margin, Weilai’s overall gross profit margin in the first quarter fell to 1.5%, and the gross profit margin of the automobile business dropped to 5.1%, a sharp drop from 14.6% and 18.1% in the same period last year. At present, BYD occupies a dominant position in the domestic new energy market, while Weilai falls out of the forefront. NIO has received $1.1 billion in financial support from the Middle East sovereign fund amid a declining financial situation.

CYVN Holdings is an investment institution controlled by the Abu Dhabi government, focusing on strategic investment and layout in the field of advanced smart mobility, and is committed to cooperating with global industry leaders in this field.

Li Bin, founder, chairman and CEO of NIO, said: “CYVN’s strategic investment reflects NIO’s unique value in the smart electric vehicle industry. This investment transaction will further strengthen NIO’s balance sheet and accelerate our growth. Business growth. Promote technological innovation and build long-term competitiveness. At the same time, we look forward to cooperating with CYVN in the future to expand NIO’s international business.”

The “We UAE 2031” strategy, presented at the UAE government’s annual meeting in November 2022, focuses on diversified economic development, focusing on four main areas: social, economic, diplomatic and ecological. In the economic field, the plan proposes to accelerate energy transformation, increase the use of alternative energy, and strengthen the development of a green economy.

The financing of NIO and other new energy auto companies is a good opportunity for the company’s own development, and it will speed up its global expansion and deployment in the global market.

[ad_2]

Source link

Related Articles

UAE: Sheikh Mohamed Welcomes Emir of Qatar in Abu Dhabi

UAE: Sheikh Mohamed Welcomes Emir of Qatar in Abu Dhabi Abu Dhabi, UAE – In a significant diplomatic event, Sheikh Mohamed, the leader of the...

UAE Revolutionizes Transportation: Abu Dhabi to Dubai in Just 30 Minutes by Flying Taxis

UAE: Soon, travel from Abu Dhabi to Dubai in just 30 minutes by flying taxis In a groundbreaking development for transportation infrastructure, the United Arab...

Etihad Launches Airbus A380 on Abu Dhabi-New York Route

Etihad Airbus A380 Debut: Transforming the Abu Dhabi-New York Route Etihad Airways, one of the leading airlines in the Middle East, has marked a significant...

Abu Dhabi Islamic Bank Maintains Strong Financial Performance in Q1 2024

Abu Dhabi Islamic Bank Continues Strong Performance in Q1 2024 In the fast-paced realm of global finance, few institutions stand out as consistently as Abu...

Abu Dhabi Welcomes World’s First ‘Healthy Living’ Island

Abu Dhabi Welcomes World's First 'Vitality Island' for Healthy Living Abu Dhabi, a global hub of innovation and progress, has once again captured international attention...

Latest Articles