NIO released its first quarter 2019 earnings report on May 28. Data shows that the company’s revenue in the first quarter of 2019 was CNY 1.63 billion (USD 243.1 million), down 52.5 percent from the fourth quarter of 2018, and its net loss was CNY 2.62 billion (USD 390.9 million), down 25.1 percent month-on-month and up 71.4 percent year-on-year.
Despite the continued losses, NIO reported good news in its earnings report. In May 2019, NIO signed a framework agreement with Beijing Yi Zhuang International Investment and Development co., LTD (亦庄国际投资发展有限公司), an investment company headquartered in Beijing economic and technological development zone.
The agreement said that NIO will set up a new entity “NIO China” in Beijing economic and technological development zone, and inject specific businesses and assets into “NIO China”. Yi Zhuang will invest CNY 10 billion (USD 1.447 billion) in “NIO China” in cash through its designated investment company or other joint investors, in order to acquire the non-controlling shareholders’ equity in “NIO China”.
In addition, Yi Zhuang will also assist in the construction of “NIO China” or introduce a third party to jointly build NIO China advanced manufacturing base to produce the company’s second-generation models.