On September 29th, NIO announced that it had signed strategic investment agreements with three existing shareholders (referred to as "strategic investors") of NIO Holdings Limited (hereinafter referred to as "NIO China") - Hefei Jianheng New Energy Vehicle Investment Fund Partnership Enterprise (Limited Partnership), Anhui High tech Industry Investment Co., Ltd., and Guotou Investment Management Co., Ltd.
According to the agreement, strategic investors will increase their capital by RMB 3.3 billion to subscribe for NIO China's newly issued shares, and NIO will also invest RMB 10 billion in cash to subscribe for NIO China's newly issued shares.
This is another financing activity by NIO and its related companies since the beginning of this year. In May of this year, NIO Energy Investment (Hubei) Co., Ltd. (hereinafter referred to as "NIO Energy") received a strategic investment of RMB 1.5 billion from institutions such as Wuhan Guangchuang Emerging Technology Phase I Venture Capital Fund Partnership Enterprise (Limited Partnership). NIO Chairman and CEO Li Bin stated that after the financing, NIO still holds approximately 90% of the shares in NIO Energy; NIO Energy's independent financing plan has begun and is open to investment from other car companies or investors.
In recent months, NIO's sales performance has been relatively good, with monthly sales continuously exceeding 20000 units. According to financial report data, NIO's revenue in the second quarter of 2024 was 17.45 billion yuan, a year-on-year increase of 98.9% and a month on month increase of 76.1%; The gross profit margin of the entire vehicle was 12.2%, an increase of 6 percentage points year-on-year and 3 percentage points month on month.
NIO stated that the delivery guidance for the third quarter is between 61000 and 63000 vehicles; The revenue guidance for the third quarter is between 19.11 billion yuan and 19.67 billion yuan, both of which have reached historic highs.
In addition, NIO's second brand, Ledao, has recently started delivery. Wilson's report shows that the average number of new orders per store for Ledao's first product L60 is 180, with a delivery cycle of 12-16 weeks. Li Bin stated that the gross profit of the Ledao L60 can reach 15%, with a monthly sales of 20000 vehicles, which would give it good profitability; The biggest challenge currently lies in production and delivery.
Recently, several internationally renowned investment banks have raised their expectations for NIO: after NIO's financial report was released, JPMorgan Chase raised its ADR rating to overweight, with a target price of $8; Deutsche Bank believes that the selling price of the Ledao L60 is highly competitive, and based on an optimistic estimate of the Ledao L60, has raised the target price for NIO's Hong Kong stock from HKD 65.5 to HKD 72.
But as of the previous fiscal quarter, NIO has not yet achieved breakeven. According to financial report data, NIO incurred a net loss of 10.384 billion yuan in the first half of this year, with the loss expanding by 4.95% year-on-year. As of the end of June 2024, NIO's cash and cash equivalents, restricted cash, short-term investments, and long-term term deposits amounted to RMB 41.6 billion, of which RMB 24.652 billion was cash and equivalents, and RMB 32.935 billion was at the end of 2023.