On June 20, NIO Inc. 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 $1.1 billion in NIO through private placement of new shares and the transfer of old shares.

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Recent financial data shows that in the first quarter, NIO's revenue was CNY 10.677 billion, up 7.7% year-on-year, and its net loss was CNY 4.74 billion, up 165.9% year-on-year. In terms of gross margin, the overall gross margin of NIO dropped to 1.5% in the first quarter and the gross margin of the automotive business dropped to 5.1%, a significant decline compared to 14.6% and 18.1%, respectively, in the same period last year.

In the current domestic new energy market, BYD remains the dominant player, while NIO has been falling out of the top tier. At a time of declining finances, NIO has received a $1.1 billion funding boost from a Middle Eastern sovereign fund.

CYVN Holdings is a majority-owned investment institution held by the Abu Dhabi government, which is focused on strategic investment and deployment in the field of advanced and intelligent 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 business growth for us. Promote technological innovation, and build long-term competitiveness. At the same time, we look forward to cooperating with CYVN to expand NIO’s international business in the future.”

The strategy presented at the UAE Government's annual conference in November 2022 focuses on diversified economic development, with an emphasis on four main areas: social, economic, diplomatic, and ecosystems. In the economic sphere, the plan proposes to accelerate the energy transition, increase the use of alternative energy sources, and strengthen the country's green economy efforts.

Thus, new energy vehicle companies such as NIO are to receive financing, and this is a good opportunity for the company's own development, accelerating its move abroad and its global market presence.

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