The competition in the new energy sector is becoming increasingly fierce, and technological and product innovation supported by capital will be a crucial means to gain core competitiveness.
On December 18th, NIO signed a new round of share subscription agreement with Abu Dhabi investment firm CYVN Holdings (CYVN). According to the agreement, CYVN Holdings, through its subsidiary CYVN Investments, will make a strategic investment of approximately USD 2.2 billion in cash into NIO. Following this investment, NIO and CYVN will continue their strategic and technological cooperation in the international market.
NIO's founder, chairman, and CEO, William Li, stated, "We are inspired by CYVN's vision of accelerating the global transformation towards a more sustainable future and appreciate their recognition of NIO's unique value. With a strengthened balance sheet, NIO is well-prepared to cope with the increasingly competitive landscape. While enhancing brand positioning, improving sales and service capabilities, and making long-term investments in core technologies, we will continuously enhance execution efficiency and system capabilities. We firmly believe that NIO will further consolidate its leading position in the global automotive industry transformation."
In July of this year, CYVN completed a strategic investment of approximately USD 1.1 billion through private placements and transfer of existing shares. CYVN is an investment firm headquartered in Abu Dhabi, focusing on strategic investments and layouts in the advanced, intelligent, and sustainable mobility sector. They are committed to collaborating with global industry leaders in this field.
Jassem Al Zaabi, Chairman and Managing Director of CYVN, demonstrated that, "Increasing our strategic investment in NIO aligns with our strategy to establish a globally leading investment portfolio in the mobility sector. This investment demonstrates our confidence in NIO's unique positioning and competitiveness in the global smart electric vehicle industry. We are pleased to become a long-term strategic partner of NIO and support their relentless efforts in product innovation, technological breakthroughs, and international market expansion."