NIO Inc., a leading Chinese new energy vehicle (NEV) manufacturer, recently made a significant announcement on March 27th. The company revealed plans for a share placement of up to 118.79 million Class A ordinary shares at HK$29.46 per share, with the goal of raising approximately HK$3.5 billion (around 3.271 billion RMB). The net proceeds from this placement are intended to primarily support research and development efforts to drive technological innovation and product expansion. Additionally, a portion of the funds will be allocated towards optimizing the company’s financial position and maintaining competitiveness in the global NEV market.
On the same day, NIO successfully completed the share placement, ultimately raising a total of HK$4.03 billion through an accelerated offering at the same price per share. Following this news, NIO’s stock (NIO.N) on the U.S. market experienced a 5.69% decline overnight. The company’s Hong Kong-listed shares (9866.HK) also saw a drop of over 8% intraday before stabilizing at a 7.83% decrease, ultimately closing at HK$30 per share.
In NIO’s 2024 financial report, it was revealed that the company achieved annual revenue of 65.73 billion RMB, marking an 18.2% year-on-year increase. Total vehicle deliveries reached 221,970 units, representing a significant surge of 38.7% from the previous year. In the fourth quarter of 2024, NIO’s revenue grew by 15% year over year to 19.7 billion RMB, with 72,689 vehicles delivered.
Despite the impressive revenue growth, NIO continued to operate at a loss, reporting a net loss of 22.4 billion RMB for the year 2024. Founder and Chairman William Li addressed this issue during the earnings call, outlining plans for cost-cutting measures across the supply chain and research and development sectors in 2025. The focus will be on improving gross margins in the second quarter of the year, with a clear goal of achieving profitability by the fourth quarter of 2025.
Overall, NIO’s performance in the NEV market remains strong, with a commitment to innovation and financial stability. The company’s strategic decisions and focus on profitability highlight its determination to excel in an increasingly competitive industry.
