NIO, a global smart electric vehicle company, announced that it and its subsidiary GeniTech Co., Ltd., known as Shenji, have entered into definitive agreements with a group of investors in China for a RMB2.257 billion investment, equivalent to approximately $325 million.
Under the agreements, the investors will subscribe to newly issued shares of Shenji in an all-cash transaction that is subject to customary closing conditions. Shenji is primarily responsible for NIO’s intelligent-driving chip related business, a key pillar of the company’s next-generation core technologies strategy.
Upon completion of the transaction, a subsidiary of NIO will retain a controlling 62.7% equity interest in Shenji, and NIO will continue to consolidate Shenji’s financial results. The Shenji investors will collectively hold 27.3% of the subsidiary’s equity, while entities administering Shenji’s share incentive plan will hold the remaining 10.0%.
Founded in November 2014, NIO is a pioneer in the global smart electric vehicle market with a mission of “Blue Sky Coming.” The company designs, develops, manufactures and sells smart electric vehicles and drives innovation across intelligent driving, battery swapping, battery-as-a-service (BaaS), and other core technologies.
NIO offers premium smart electric vehicles under the NIO brand, family-oriented smart electric vehicles under the ONVO brand, and small smart high-end electric cars under the FIREFLY brand.
The company noted that the announcement includes forward-looking statements subject to risks and uncertainties, including factors related to business strategy, manufacturing capacity, technology development, supply chain conditions, regulatory compliance, and broader economic conditions, as detailed in its regulatory filings.
