NIO raises HK$4.03 billion through share placement in Hong Kong

Beijing (Gasgoo)- On March 27, Chinese new energy vehicle (NEV) maker NIO Inc. announced a share placement of up to 118.79 million Class A ordinary shares at HK$29.46 per share, aiming to raise approximately HK$3.5 billion (around 3.271 billion RMB).

The company stated that the net proceeds will primarily support R&D to drive technological innovation and product expansion. Additionally, part of the funds will be used to optimize its financial position and maintain competitiveness in the global NEV market.

Later that evening, NIO successfully completed the offering, raising a total of HK$4.03 billion through an accelerated placement at the same price per share. Following the news, NIO's stock (NIO.N) on the U.S. market fell 5.69% overnight. On March 28, its Hong Kong-listed shares (9866.HK) dropped over 8% intraday before stabilizing at a 7.83% decline, closing at HK$30 per share.  

According to NIO's 2024 financial report, the company recorded annual revenue of 65.73 billion RMB, up 18.2% year-on-year, with total vehicle deliveries reaching 221,970 units, which surged 38.7% from a year ago. In the fourth quarter (Q4) of last year, NIO's revenue grew 15% year over year to 19.7 billion RMB, with 72,689 vehicles delivered.

NIO's overall gross margin improved to 12% in Q4 2024, while annual gross margin rose to 10%, exceeding market expectations. However, despite revenue growth, NIO remained unprofitable, posting a net loss of 22.4 billion RMB for 2024.

Founder and Chairman William Li stated in the earnings call that cost-cutting measures across supply chain and R&D will continue in 2025, with a focus on improving gross margins in the second quarter of this year. He emphasized that the company must achieve profitability in Q4 of 2025.