Lei Jianping on April 13
NIO Group recently submitted its 2023 annual report. According to the annual report, as of March 31, 2024, Li Bin, founder and CEO of NIO, held 8.5% of the shares and had 38.5% of the voting rights.
As of March 31, 2024, NIO's shareholding structure
Middle East Capital CYVN Investments RSC holds 20.1% of the shares and has 13.4% of the voting rights, while Tencent holds 5.7% of the shares and has 3.9% of the voting rights.
As of February 28, 2023, NIO's shareholding structure
As of February 28, 2023, Li Bin held 10.5% of the shares and 44.2% of the voting rights, Tencent held 9.7% of the shares and had 5.9% of the voting rights, and Baillie Gifford & Co held 7.2% of the shares and 4.4% of the voting rights.
In the past year, NIO's shareholding has undergone tremendous changes, among which CYVN has become the absolute majority shareholder of NIO Group, Li Bin's shareholding has decreased by 2 percentage points and voting rights by 5.7 percentage points, and Tencent's shareholding has decreased by 4 percentage points and voting rights by 2 percentage points.
The main reason is that in July 2023, NIO Group completed a strategic equity investment of US$738.5 million from CYVN Investments RSC Ltd (also known as CYVN Investments, an affiliate of CYVN Holdings L.L.C., an investor in Abu Dhabi). CYVN Investments invested US$738.5 million in cash to subscribe for 84,695,543 newly issued Class A ordinary shares of the Company at a purchase price of US$8.72 per share.
In July 2023, CYVN Investments also acquired 40,137,614 Class A ordinary shares of the Company from an affiliate of Tencent for a total consideration of US$350 million.
In December 2023, NIO completed another round of strategic equity investment of US$2.2 billion from CYVN Investments. CYVN Investments invested US$2.2 billion in cash to subscribe for 294,000,000 new Class A ordinary shares of the Company at a purchase price of US$7.50 per share.
However, as of today, NIO's stock price is $4.11, with a market capitalization of about $8.578 billion, which has led to a floating loss of more than $1.5 billion in Middle Eastern capital CYVN, a floating loss ratio of 49%.
In September and October 2023, NIO issued US$575 million aggregate principal amount of 3.875% Convertible Senior Notes due 2029 (the 2029 Notes) and US$575 million aggregate principal amount of 4.625% Convertible Senior Notes due 2030 (the 2030 Bonds).
Shortly after the pricing of the 2029 Notes and 2030 Bonds, NIO used the proceeds from the 2029 Bonds and 2030 Bonds offering to purchase the 2026 Notes in aggregate principal amount of approximately US$256 million and the 2027 Notes in aggregate principal amount of approximately US$244 million, respectively, in a transaction negotiated independently and privately with one of the initial purchasers and its affiliates.
In February 2024, NIO completed the repurchase option offer in relation to the 2026 Bonds. The 2026 Notes in an aggregate principal amount of US$300.5 million have been validly submitted and have not been withdrawn prior to the close of the repurchase option. Pending the settlement of the repurchase, the 2026 Notes in an aggregate principal amount of US$912,000 remain outstanding and continue to be subject to the existing terms of the Covenant and the 2026 Notes.
Overall, NIO's management team has remained relatively stable in the past year, with Li Bin as chairman and CEO, and Qin Lihong as president. On February 7, 2024, NIO appointed Eddy Georges Skaf and Nicholas Paul Collins as new directors to the Company's Board of Directors. On the same day, James Gordon Mitchell resigned as a director of the Company. Eddy Georges Skaf is from CYVN.
The annual loss is more than 20 billion
NIO Group is a high-end smart electric vehicle company, designing, developing, manufacturing and selling high-end smart electric vehicles, driving innovation in next-generation technologies such as intelligent driver assistance, digital technology, electric powertrain and batteries. NIO has battery swapping technology, battery subscription service (or BaaS), as well as its self-developed NIO intelligent driving and its subscription service.
NIO's product portfolio currently includes a six-seater smart electric flagship SUV-ES8, a mid-to-large five-seater smart electric SUV-ES7 (or EL7), a five-seater all-round smart electric SUV-ES6 (or EL6), a five-seater smart electric flagship coupe SUV-EC7, a five-seater smart electric coupe SUV-EC6, a five-seater smart electric executive flagship coupe SUV-ET9, a smart electric flagship sedan ET7, A mid-size smart electric sedan ET5 and a smart electric station wagon ET5T.
In 2023, NIO delivered 160,038 vehicles, including 92,186 high-end smart electric SUVs and 67,852 high-end smart electric cars.
In December 2023, NIO Group launched the ET9, the executive flagship of smart electric vehicles, and deliveries of the ET9 are expected to begin in the first quarter of 2025.
NIO's revenue in 2021, 2022, and 2023 will be 36.136 billion yuan, 49.269 billion yuan, and 55.618 billion yuan (about 7.834 billion U.S. dollars), respectively, and its gross profit will be 6.82 billion yuan, 5.14 billion yuan, and 3.05 billion yuan (about 430 million U.S. dollars), respectively.
NIO Group's operating losses in 2021, 2022, and 2023 will be 4.496 billion yuan, 15.64 billion yuan, and 22.655 billion yuan (about 3.19 billion U.S. dollars), respectively, and its net losses will be 4.017 billion yuan, 14.437 billion yuan, and 20.72 billion yuan (about 2.918 billion U.S. dollars), respectively.
Among the new energy vehicle manufacturers, NIO's losses have been relatively significant. NIO lost more than 20 billion yuan a year. This is because NIO's stall is relatively large, and in addition to making cars, it also involves other businesses such as battery replacement and mobile phones. Especially in the mobile phone business, it is not distressing to be criticized for wasting investors' money.
Earlier, Li Bin said in a group interview with the media that the money that should be spent should be spent resolutely, and the money that should not be spent should be resolutely saved, and reducing costs and improving efficiency is a very high priority. In 2022, 10.8 billion R&D expenses were invested, and this year it will also remain at 3 billion per quarter. If you don't guarantee the intensity of investment, you won't survive. ”
Qin Lihong, president of NIO, said that NIO is not squandering investors' money and is not an inefficient company, but building a high-end brand, and it needs to try more and may pay some tuition. "Roll to save money, NIO executives are not lagging behind. To say that we spend money blindly is nonsense. Qin Lihong pointed out that he and Li Bin have always shared a 12-square-meter office, and they also pay for their own business class on business trips, and live in a hotel of 400 standards, which is more than their own money.
Of course, whether it is Li Bin, the founder of Weilai, or Qin Lihong, they have long been financially free, and as a wealthy man who is worth more than 100 million yuan, it is normal to take business class on business trips and live in five-star hotels.
Li Bin mentioned that NIO is more negative: "I don't understand either, there may be many peers who care about us." Let's talk more about our positivity, and strive to let everyone know more about us, instead of being labelled more." "I hope to hack others in the future, there are so many people who can be black, don't say much, it's all tears if you talk too much. ”
As of December 31, 2023, NIO had cash and cash equivalents, restricted cash, short-term investments and long-term term deposits of RMB57.3 billion (US$8.1 billion).
Compared with 2019, NIO's state is much better. Of course, in November 2023, NIO announced that the company would reduce its jobs by about 10%, which means that 2,000 to 3,000 people left NIO.
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Lei Di was founded by Lei Jianping, a media person, if it is reprinted, please indicate the source.