A timely help? NIO completes $100 million convertible bond financing

Recently, NIO announced that it has signed a convertible bond subscription agreement with an Asian investment fund. NIO will issue and sell convertible bonds with a total principal amount of US$70 million specifically for this Asian investment fund. Previously, NIO also completed a convertible bond financing of US$30 million with another Asian investment fund in a similar manner.

Although the financing freedom and tolerance of this $100 million convertible bond are not as good as traditional strategic investments, considering NIO’s current financial situation, this $100 million convertible bond financing is undoubtedly a timely help. Taking NIO’s Q3 2019 financial report as an example, its revenue was RMB 1.837 billion, but its net loss reached a staggering RMB 2.554 billion. This must have deterred some investment institutions that are unwilling to take risks.

In addition, from the external environment, Tesla has been aggressively building factories in the Chinese market to increase production capacity, and has also actively lowered the price of its cars. For example, Tesla's best-selling product Model 3 is priced at only 299,050 yuan. This is definitely not a good thing for NIO. Here, we still hope that NIO can reverse its decline with the $100 million convertible bond financing.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.