Nio’s EV-making partner puts factory, other assets up for sale
ANHUI Jianghuai Automobile Group Corp, which makes electric vehicles for US-listed Nio, is selling a car factory and other assets worth an estimated 4.5 billion yuan (S$844 million).
Some assets are from two manufacturing facilities that produce Nio EVs and started operating in 2018 and 2022, China Securities Journal reported.
Anhui Jianghuai said that the sales, which include equipment and inventory, will help improve its asset structure and will not affect operations. Nio said it is aware of the situation and added that it will not affect production.
Bloomberg reported last month that Nio is considering raising about US$3 billion from investors. That followed a June announcement that an investment entity controlled by the Abu Dhabi government was taking a 7 per cent stake in Nio for about US$738 million.
The moves have heightened concerns about the financial health of Nio, which was founded in 2014 and still has not posted a profit. In the second quarter through June, it reported a worse-than-expected loss of 6.1 billion yuan.
Nio’s deliveries slid 19 per cent in September from the previous month to 15,641 EVs. It sold more than 55,000 units in the third quarter as a whole.
William Li, Nio’s founder and chief executive officer, has previously said the company had to delay investment in fixed assets, postpone some research and development plans and take a more cautious approach to expanding overseas.
Nio’s US shares have tumbled 88 per cent from a September 2021 peak. Its Hong Kong-listed shares slid 3.7 per cent Friday following a drop of 8 per cent on Thursday. BLOOMBERG
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