Chinese automobile maker NIO announced that the company has signed a framework agreement with Beijing E-Town International Investment & Development Co., Ltd.
According to the agreement, NIO will establish a new entity "NIO China" in Beijing Economic-Technological Development Area. NIO will inject certain businesses and assets into "NIO China"; while E-Town International Investment & Development will make CNY10 billion cash investments in "NIO China" via its designated investment company or by cooperating with other investors.
In addition, E-Town International Investment & Development will help "NIO China" build or introduce third-parties to jointly build an advanced manufacturing base to produce the company's second-generation platform car. The two parties are making efforts to seal a final binding transaction document.
NIO's second bulk production car ES6 recently completed manufacturing in Hefei and the products are expected to deliver to users in late June.
NIO's financial report for the first quarter of 2019 showed that the company achieved total operating revenue of CNY1.631 billion, which was about USD243.1 million, representing a decrease of 52.5% compared with the previous quarter. If based on non-GAAP, the company made net losses of CNY2.501 billion, which was about USD372.7 million, during the first quarter of 2019.