Jianghuai Automobile's transfer of NIO's OEM factory has landed, and NIO Automobile, which has just been revealed to have obtained the qualification for car manufacturing, has officially taken over the relevant production line, further away from independent car manufacturing.
On the evening of December 5th, Jianghuai Automobile announced that the three asset packages related to the three publicly listed passenger car factories and the new bridge factory of the passenger car company had completed bidding. According to the bidding results, NIO Automobile became the transferee of the first and third asset packages, with transaction prices of 1.666 billion yuan and 1.492 billion yuan respectively, totaling 3.158 billion yuan; The second package of assets was won by Hefei Hengchuang Intelligent Technology Co., Ltd. (hereinafter referred to as "Hefei Hengchuang"), a subsidiary of the State owned Assets Supervision and Administration Commission of Hefei Economic Development Zone, for 1.418 billion yuan.
It is worth mentioning that the three factories of passenger car company and the new bridge factory of passenger car company sold by Jianghuai Automobile are known as NIO F1 and NIO F2 factories within the company. Previously, they were used for contract manufacturing for NIO, and the production line was customized by NIO. In October of this year, when Jianghuai Automobile announced for the first time that it would list and transfer the aforementioned assets, there were rumors in the market that NIO Automobile would take over, but the two companies did not make a clear statement at the time. From the bidding situation, the result is basically expected by the market.
The announcement shows that the factories sold this time are divided into three asset packages, one of which is inventory, fixed assets, and construction in progress of the three factories of the passenger car company; The second package includes the buildings, ongoing construction, and land use rights of the third factory of the passenger car company; The three guarantees are for the structures and equipment of the Xinqiao factory of the passenger car company. The first and third packages won by NIO Motors were evaluated using the cost method, with evaluation values of 1.638 billion yuan and 1.468 billion yuan, respectively, with value-added rates of 4.87% and 0.05%. The final transaction price was 1.666 billion yuan and 1.492 billion yuan, slightly higher than the evaluation price.
According to the agreement, this transaction will adopt a one-time payment method, and payment will be made within 5 working days from the effective date of the transaction contract. After completing the asset delivery, in addition to the property ownership, land use rights, and some ongoing construction of the F1 factory, NIO Automobile will acquire the equipment and production lines of the two major factories.
At the same time as winning the Jianghuai assets, NIO announced its third quarter financial report on the evening of the same day. As of the end of the third quarter, NIO's cash reserves reached 45.2 billion yuan, an increase of 13.7 billion yuan from the previous quarter, which is sufficient to pay for the acquisition of the aforementioned assets. In terms of business data, NIO's revenue and delivery volume in the third quarter both reached historic highs, with revenue reaching 19.07 billion yuan, a month on month increase of 117.4% and a year-on-year increase of 46.6%; The delivery volume was 55400 units, a month on month increase of 135.7% and a year-on-year increase of 75.4%; The gross profit margin of the entire vehicle has returned to double digits, reaching 11%, and the net loss has narrowed.
Since 2016, Jianghuai Automobile and NIO have been cooperating closely. The combination of lean manufacturing capabilities and continuous iterative product research and development has enabled NIO Automobile to stand out among a group of new car making forces, and has also continuously improved Jianghuai's car making capabilities.
Data shows that from January to November 2023, NIO delivered a total of 142000 new cars, a year-on-year increase of 33.1%; As of the end of November 2023, a total of 431600 new cars have been delivered. Behind the sustained growth in sales, Jianghuai Automobile, as a contract factory, also gained a share of the pie. According to NIO's financial report, from 2018 to 2022, approximately 223 million yuan, 441 million yuan, 532 million yuan, 715 million yuan, and 1.127 billion yuan were paid to Jianghuai Automobile for outsourcing costs.
So, why did NIO, which has always operated in a light asset model, choose to take on the next generation of factories? And how will Jianghuai create a new profit growth pole after selling its OEM factories?
Qin Lihong, co-founder and president of NIO Automobile, has stated that the asset transfer of JAC Automobile will not have any impact on the normal market operations of JAC and NIO, but more information cannot be disclosed temporarily.
Recently, there have been frequent reports of new developments in car manufacturing from NIO and JAC Motors, which may explain the logic behind this asset transfer.
On December 4th, NIO Automotive Technology (Anhui) Co., Ltd. appeared in the vehicle production enterprise credit information management system of the Ministry of Industry and Information Technology, which may indicate that NIO has obtained independent vehicle manufacturing qualifications. According to the announcement, the legal representative of the aforementioned company is Qin Lihong, with a registered address at Building F, Hengchuang Intelligent Technology Park, No. 3963 Susong Road, Economic and Technological Development Zone, Hefei City, Anhui Province. The production address is No. 299 Baita Road, Economic and Technological Development Zone, Hefei City, Anhui Province, which is the location of NIO F2 Factory.
On the other hand, Jianghuai Automobile has also found new strategic partners. On December 1st, Jianghuai Automobile announced a cooperation agreement with Huawei on intelligent new energy vehicles. Based on Huawei's intelligent vehicle solutions, the two sides will fully cooperate in product development, production and manufacturing, sales, services and other fields, focusing on building luxury intelligent connected electric vehicles. According to the agreement, Jianghuai Automobile is responsible for the overall product development of the cooperative vehicle models and building a production base to achieve efficient delivery of cooperative vehicle models; Huawei terminals or their designated third parties provide exclusive sales services for cooperative vehicle models worldwide, including but not limited to marketing, sales, user and ecological operations. The aforementioned agreement is valid for 10 years.