According to media reports, on June 11th, NIO Chairman and CEO Li Bin issued a welcome letter to the company, announcing that Bagrin Angelov (Anguobang) will serve as NIO's Vice President of Capital Markets, reporting to CFO Qu Yu. This is another "China International Capital Corporation" executive welcomed by NIO. Li Bin highly praised him in the welcome letter, stating that he has over 20 years of global experience in capital market transactions, corporate development strategies, and corporate growth. He has held management positions in the Middle East and Europe and has outstanding performance in cross-border transactions, joint ventures, financing, and cooperation. Its joining is expected to open up new investment and financing channels for NIO.
It is reported that NIO is currently facing severe financial challenges. The first quarter report released on June 3rd showed that almost all financial indicators of NIO were deteriorating, with a single vehicle gross profit margin falling to 10%, single vehicle revenue of only 236000 yuan, and an adjusted net loss of 6.27 billion yuan. The first quarter cash reserves were only 26 billion yuan, with a month on month loss of 15.9 billion yuan. In addition, as of the end of the first quarter, NIO's current liabilities exceeded its current assets, and shareholder equity turned negative. Although NIO stated in its financial report that its existing financial resources are sufficient to support normal operations for the next 12 months, it is also actively seeking external funding support. In April of this year, NIO completed a 4.03 billion yuan equity placement, supplementing a certain amount of liquidity.
It is worth noting that on June 11th, NIO announced on its official Weibo account that it will continue to implement payment terms within 60 days to promote efficient flow of upstream and downstream funds and help promote the coordinated development of the industrial chain. Although this move will contribute to the high-quality development of the automotive industry, it will undoubtedly put further pressure on NIO, which is already struggling financially.
