NIO’s subsidiary signs technology license agreement with Forseven

Shanghai (Gasgoo)- NIO Inc., a prominent player in China's premium smart electric vehicle sector, on Monday officially disclosed that its subsidiary, NIO Technology (Anhui) Co., Ltd. (the "Company"), recently inked a technology license agreement (the "Technology License Agreement") with Forseven Limited ("Forseven"), a subsidiary of CYVN Holdings L.L.C.

Under the terms of the Technology License Agreement, the Company will provide Forseven with a non-exclusive and non-transferable worldwide license. This license will enable Forseven to utilize specific existing and future technical information, technical solutions, software, and intellectual property rights associated with or inherent in the Company's smart electric vehicle platforms (collectively known as the "Licensed Technologies").

The granted license is intended for two primary purposes: (i) the R&D, manufacturing, sales, import, and export of vehicle models sold or marketed under Forseven brand(s) that meet pre-agreed manufacturer's suggested retail price ("MSRP") thresholds (excluding tax) as outlined in the Technology License Agreement (collectively, the "Licensed Products"), and (ii) the provision or procurement of specific after-sales services tailored for the Licensed Products to its users.

In accordance with the terms outlined in the Technology License Agreement, the Company is entitled to receive technology license fees. These fees consist of a non-refundable fixed upfront license fee, coupled with royalties calculated proportionally to the future sales of Licensed Products by Forseven.

The Technology License Agreement is effective until the cessation of Licensed Products production or the conclusion of Forseven’s obligation to offer after-sales services, unless terminated per the provided provisions.

Last year, CYVN Holdings made two significant investments in NIO. In July 2023, CYVN Holdings' subsidiary, CYVN Investments RSC Ltd, poured $738.5 million in a strategic investment in NIO and acquired several Class A ordinary shares of NIO from a Tencent-affiliated company for $350 million. Through private placements and the transfer of existing shares, CYVN made a total investment of around $1.1 billion in NIO.

At the end of December last year, CYVN Holdings and NIO entered into a new subscription agreement, providing a strategic investment of approximately $2.2 billion in cash to NIO. With this, NIO received a total investment of $3.3 billion from CYVN Holdings in 2023, making CYVN Holdings the largest shareholder in NIO. However, as NIO's founder, chairman, and CEO, William Bin Li, holds super-voting rights, he remains the actual shareholder of NIO.