This time, it didn't simply go on the hot search, but signed a new investment agreement, and CYVN in Abu Dhabi invested a total of $2.2 billion in it.
CYVN is a majority-owned investment vehicle owned by the Abu Dhabi Government of the United Arab Emirates with a strategic focus on the smart mobility industry.
Compared with the previous successful cases of them working together to win 1.1 billion US dollars, the biggest change in this agreement is that CYVN will become the largest shareholder of NIO, and Li Bin is no longer the only one who has the final say.
And no matter how much CYVN's share drops, as long as it is not below 15% or higher than 5%, they still retain the right to nominate two directors to the board of directors of NIO!
So the question is, does Li Bin still control the controlling stake in NIO?
Well, let's put this aside for now!
But what we need to know is that he is still the one with the most voting rights, even if he is no longer the largest shareholder of NIO.
You may ask, CYVN has invested so much money, is NIO going to become a car brand in the Middle East?
Actually, this question is really a bit complicated.
However, it is worth noting that although their shareholding ratio has changed, companies listed on the U.S. stock market will have a special equity structure called the A and B equity structure with weighted voting rights, which means that Li Bin may still be able to maintain control of NIO in this way.
Differing rights of the same shares, that is, the actual control of the company is not with the shareholder with the largest shareholding, he only has the right to dividends, and the management of the company is still the preferred shareholder, so he holds 1% of the shares.
Prior to CYVN's latest investment deal, Li Bin, the founder of NIO, held 9.3% (up to 165 million shares) of the stock in his hands, ranking first, followed by Abu Dhabi, Tencent Holdings, Baiji Investments and BlackRock.
However, when CYVN invests that $2.2 billion and raises its stake to 20.1% (about 418.8 million shares), Li's stake will be reduced, and it seems that he will have to give up his position as a major shareholder.
In fact, from the perspective of shareholding ratio, this is indeed the case, but it depends on how to understand it.
Now it seems that NIO is still very active in the capital market. Especially in 2021, with the help of the booming situation in the capital market, NIO has successfully accumulated more than 40 billion book cash reserves through various financing methods!
Now, when it comes to "petrodollars", everyone must be familiar with them.
Li Bin found the business opportunities contained in it, which may also better explain why Middle Eastern capital began to collect Chinese assets frantically, such as petrochemicals, new energy, photovoltaics and other fields have become the favorite of these local tyrant investors.
In the energy and automotive industry, in addition to NIO, Middle Eastern tycoons have also set their sights on companies such as Human Horizons and Tianji Automobile, and even asked them to establish production bases in the Middle East.
To be honest, the huge amount of money that CYVN invested in NIO is really like a "life-saving straw" for NIO now.
Let's be honest with you, since entering 2023, NIO has been really troublesome!
The stock price has also been declining, the financial situation has always been in a state of loss, and the market value has also shrunk seriously...... Coupled with the two recent news, it highlights how huge the financial pressure NIO is facing now.
One of the most shocking was the November 3rd incident. At that time, Li Bin personally issued an announcement that the company would lay off about 10% of its employees, wouldn't that mean losing about 2,000 to 3,000 loyal employees?
I've heard for a long time that in 2016, NIO was not as famous as it is now, so it became a good friend with JAC Motors with a deep background!
JAC is responsible for helping NIO produce a variety of electric models, such as the well-known EC6, ES6, ES8 and other classic models are their masterpieces.
However, in October of this year, something that no one expected happened, that is, JAC Motors announced a message that shocked the industry, saying that they were going to sell the two fixed assets of the Weilai F1 factory and the Weilai F2 factory, and the total selling price was 4.498 billion yuan.
As soon as this news came out, everyone thought that NIO would be the final winner, and it was logical to acquire all these two factories and then get their own independent production qualifications.
In fact, it was so coincidental that on December 5th, Weilai issued a statement together with JAC, introducing that Weilai spent 3.158 billion yuan to pocket the inventory, fixed assets and projects under construction of the three factories of JAC Passenger Car Company, as well as the houses and equipment of the Xinqiao Factory of the passenger car company!
Speaking of which, you may wonder why NIO spent so much money on these two factories.
In fact, looking at the financial statements of Weilai Automobile in the previous quarters, you can understand that it is currently experiencing serious losses, reaching an astonishing 4.557 billion yuan.
On the one hand, in order to save money, it is engaged in layoffs and streamlining institutions, and on the other hand, it is willing to spend money to buy factories.
Just because these two pieces of news are put together, everyone is speculating about what happened to NIO, whether it will be acquired or bankrupt?
However, at this very moment, someone has spent a lot of money to save NIO, just like the hero who helped NIO survive the crisis. That's right, this person is the famous Middle Eastern oil magnates.
Looking back, back in June this year, NIO, which was listed on the New York Stock Exchange in the United States, received nearly $738.5 million in investment from CYVN, which is enough to show that NIO's prospects are highly regarded by all parties.
Moreover, CYVN, through an institution affiliated with Tencent Holdings, also directly purchased $350 million worth of A-class common shares of NIO!
After this transaction, CYVN can not only play the role of director recommendation, but also become the largest shareholder of NIO except for the founder Mr. Li Bin.
In other words, this is simply a selfless rescue battle for NIO by the boss of CYVN!
However, judging from the recent performance, NIO is fully worthy of letting these bigwigs help again.
On December 5th, NIO took out their accounting report for the third quarter of 2023 to bask in the sun!
The data in the report tells us that their delivery volume and the amount of money they made during the last reporting period are all record highs, and whether it is the profit margin or the deposit, it has also been significantly improved, and the phenomenon of non-stop loss has been alleviated a lot!
Having said that, why are those Middle Eastern tyrants who have been planted in oil willing to spend so much money to gamble on NIO?
In fact, the reason is very simple, choosing NIO is equivalent to choosing the future of China!
Let's take the Abu Dhabi investment institution CYVN, a fierce role, led by the Abu Dhabi Ministry of Finance, whose big boss, Jassem Al Zaabi, is both the Minister of Finance and the Deputy Chairman of the Central Bank.
Did you know that Abu Dhabi is also the capital of the United Arab Emirates and one of the seven United Arab Emirates, just like Dubai.
However, it is usually only known that Dubaiites are rich and prosperous, and don't forget that Abu Dhabi is truly a gold and oil producer, accounting for a staggering 90% of the UAE's oil reserves.
After making a lot of money selling oil, these rich Middle Eastern masters are thinking about how to get rid of the old way of over-dependence on oil and do everything possible to diversify the economy.
Take a look at the "Vision 2030" proposed by Saudi Arabia and the "2050 Zero Emission Strategic Initiative" of the United Arab Emirates, all of which regard electric vehicles as heavyweights to promote the energy revolution!
Then again, why do these local tyrants always want to buy China's new car-making forces?
In fact, there have been traces before.
In the past year, several of our domestic car companies, such as Tianji Automobile, Human Horizons, Great Wall Huaguan, Evergrande Automobile, etc., have signed various agreements with local tyrants in the Middle East, or have been bought a lot of shares!
This time, CYVN has contributed to NIO, and their chairman Jassem Al Zaabi is full of confidence!
He said: "Joining NIO is a small part of our strategy to build the world's best travel portfolio.
We are very happy about NIO's special position and strong competitiveness in the global smart electric vehicle industry!"
Li Bin saw that he had a lot of money in his hand now, what should he do?
So he replied: "NIO is ready to meet the challenges of more fierce competition! We will continue to improve our work efficiency and system quality while enhancing our brand influence, improving our sales and service capabilities, and strengthening the research and development of core technologies."
I am convinced that NIO will maintain its leading position in the global automotive industry's shift to new energy, and will not disappoint you. ”
To be honest, as early as last week, Li Bin said that steady development is very important for NIO.
However, just being alive cannot satisfy NIO's appetite, and we must gain a firm foothold in the market competition and move towards the ultimate peak. At that point, we'll have to find a way to win this game
Now it seems that Li Bin still has such a sentence hidden in his heart - in order to win, it is not enough to rely on his own efforts, and sometimes he has to rely on the "white knight" to lend a helping hand in order to achieve success in the end! What do you think?