On June 20, high-end smart electric vehicle manufacturer NIO announced that it has cooperated with CYVN Holdings L.L.C.("CYVN") entered into a Share Subscription Agreement。Under the share subscription agreement, CYVN will put in total cash 7.$38.5 billion at a share purchase price of 8.$72 subscription for 84,695,543 new Class A ordinary shares of the Company, with delivery expected in early July 2023。

At the same time, CYVN has entered into a share purchase agreement with one of Tencent's affiliates (the "Existing Shareholders").。Under the agreement, CYVN will purchase 40,137,614 shares of Weilai's Class A common stock held by the existing shareholder.。

After the implementation of the above two agreements, CYVN will actually hold approximately 7% of the total number of shares issued and outstanding by Weilai..0%。On or after the closing of the investment transaction, CYVN will have the right to nominate a director to the Board of Directors of NIO.。

In addition, NIO and CYVN agreed to work together to seek opportunities to develop NIO's international business after the settlement of the investment transaction.。Li Bin, founder, chairman and CEO of NIO, said: "CYVN Holdings' strategic investment reflects NIO's unique value in the smart electric vehicle industry.。This investment transaction will further strengthen NIO's balance sheet and power our ongoing efforts to accelerate business growth, drive technological innovation and build long-term competitiveness.。"

"Our strategic investment in NIO comes from our recognition of NIO's leading brand position in the smart electric vehicle market, innovative high-end products and technical capabilities," said Jassem Al Zaabi, Chairman and Managing Director of CYVN Holdings.。We will work with Weilai to promote the global energy transition and the sustainable development of human society。"

It is reported that CYVN, which is making a strategic investment in Weilai, is an entity primarily funded by the Abu Dhabi Ministry of Finance, in which the Abu Dhabi government holds a majority stake.。CYVN is part of the Abu Dhabi Sovereign Investment Fund System with over $1 trillion in assets under management.。The Abu Dhabi Sovereign Fund is one of the world's largest sovereign wealth funds, founded in 1976 and based in Abu Dhabi, owned by the Emirate of Abu Dhabi and funded primarily by Abu Dhabi's oil revenues.。

In a word, CYVN is not bad for money。And CYVN has been focusing on strategic investments and deployments in advanced, intelligent mobility throughout the year, and is committed to working with industry leaders in this field around the world.。Not bad money CYVN this strategic investment, for Weilai a bit "timely rain" means。Because this year, Weilai's performance has been unsatisfactory.。

In terms of performance, in the first quarter of 2023, Weilai's total revenue was 106.76.5 billion yuan (RMB, the same below), down 0.2%, down 33.5%; car sales revenue of 92.24.5 billion yuan, down 0.2%, down 37.5%; gross profit of 1.62.3 billion yuan, down 88.8%, down 73.9%; first quarter gross margin was only 1.5%, compared to 14.6%, 3 in the previous quarter.9%。Net loss was 47.39.5 billion yuan, compared with 1.7 billion yuan in the same period last year..82.7 billion; adjusted net loss (non-GAAP) of 41.50.1 billion yuan, compared with 1.3 billion yuan in the same period last year..09.6 billion yuan。

Revenue stagnates, gross profit declines, losses widen, Weilai's first quarter is not very good-looking。And this year, NIO's electric vehicle delivery data is also declining month by month。A total of 43,854 vehicles were delivered in January-May, just 17 short of its target of annual sales of 250,000 vehicles..54%。At the same time, Weilai's cash flow also declined month-on-month.。As at 31 March 2023, the Group's cash and cash equivalents, restricted cash, short-term investments and long-term term deposits amounted to $37.8 billion.。By comparison, cash flow at the end of last quarter was about $45.5 billion.。

For the company's operating losses show no signs of improvement, Li Bin also revealed that the company has been taking relevant actions: "This year, we have also taken some measures, such as some fixed asset investment, we have postponed, including some research and development projects, but also postponed, as well as our global market entry, in Europe, this year we will also focus on several countries that have entered.。"

Through the targeted issuance of new shares and the transfer of old shares, CYVN will make a total of about 1.1 billion U.S. dollars (about 7.9 billion yuan) of strategic investment to Weilai, to solve Weilai's urgent needs.。

Li Bin revealed that the cooperation from the discussion to the signing of the agreement only three weeks, showing Abu Dhabi's determination to invest in technological innovation and clean energy transformation, decision-making and implementation of ultra-high efficiency, vision, execution, which is highly consistent with the concept of NIO Vision, Action。It is believed that the cooperation between the two sides will further promote the early realization of Blue Sky Coming's vision.。

At the same time, Abu Dhabi's strategic investment will also launch a partnership to help NIO's global expansion.。As one of the three largest Chinese electric car manufacturers listed in the United States, NIO launched its internationalization in 2021.。NIO had previously entered the international market from Norway and established an extensive network of battery replacement stations there.。Subsequently, the pace expanded to Germany, the Netherlands, Sweden, Denmark and other European countries, and officially provide full service。Its mass market brands "Alps" and "Firefly" may be launched as soon as 2024.。