Caixin Global – Latest China News & Headlines

Home >


CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

Forget About 5G, China Says. We’re Already Developing 6G
Alibaba Sued by Home Appliance Maker Over E-Commerce Marketing
WeChat Pay Eyes Foreign Visitors in Race with Alipay
Reporter’s Notebook: Alibaba’s Good Luck Symbols Pay Off on Double 11
Money-Losing Ping An Fintech Unicorn Preparing for U.S. IPO
Hong Kong Unrest Rains on’s Red Carpet
Internet Regulators Shut Down News Site for Defying Desist Order
Luckin Withdraws Lawsuit Against Starbucks As Sales Surge
Chinese Bitcoin-Mining Machine Company Canaan Slashes Its U.S. IPO
Alibaba CEO Strikes Hopeful Tone as E-Commerce Giant Prepares for Hong Kong IPO
WeWork’s China Challenger Eyes U.S. IPO Next Month
Chinese Podcast Startup Ximalaya Seeks $3.5 Billion Value
Weibo Reports 11.5% Drop in Third-Quarter Profit
China to Launch Vaccine-Tracing App Next Year: Report
Chinese Central Bank Denies Digital Currency Issuance Rumors
Chinese EV Maker Xpeng Secures $400 Million Series C Funding With Xiaomi Tie-up
China’s Starbucks Challenger Posts Piping Hot Third-Quarter Sales
Renowned Chinese Tech Veteran Harry Shum to Leave Microsoft
Two Billionaire Hikvision Directors Embroiled in Disclosure Investigation
Alibaba Eyes Nov. 26 Trading Debut for Hong Kong IPO
Vipshop Books Strong Q3 Earnings, But Investors Unimpressed
Embattled Electric Car-Maker Nio Hires Auto Analyst as New CFO
Tesla Gets Permit to Start Mass Production in China
Nio Plans New Beijing Venture With State-Backed Partner

By Zheng Lichun, Zhao Runhua and Han Wei / May 29, 2019 02:55 AM / Business & Tech

Photo: VCG

Photo: VCG

China’s electric-car startup Nio Inc. announced a new venture with a 10 billion yuan ($1.45 billion) investment from a state-backed investor as the company reported first-quarter results Tuesday.

New York-listed Nio said it will form a joint venture with Beijing E-Town International Investment and Development Co. Ltd. in the Beijing Economic-Technological Development Area on the southern edge of the city. Beijing E-Town will support Nio in building a new manufacturing facility for its next-generation platform 2.0 vehicles, which are set to hit the market around 2021, Nio said. The company added that the parties are still in talks to work out a final binding definitive agreement on the investment.

Nio’s vehicles are currently produced in partnership with state-owned JAC Motors in Anhui province capital Hefei. The company in March abandoned a plan to build a factory in Shanghai because of competition from Tesla Inc.

Nio on Tuesday reported a smaller-than-expected loss for the first quarter. The company’s adjusted net loss was $373 million for the first quarter, 25.5% narrower than in the previous quarter and lower than the $472 million loss that was expected.

The company’s total revenue for the quarter dropped more than 50% from the previous quarter to $243.1 million. Nio sold 3,989 vehicles during the first three months, a drop of 50% from the previous quarter.

An increase in research and general expenses was expected to make it harder for the company to profit, but Nio actually narrowed costs and losses during the period.

The company attributed declines in key performance figures to factors including the phasing out of EV subsidies, ongoing trade tensions, the Chinese car industry’s slowing and intensifying competition.

Related: EV Explosions Spark Safety Concerns

Share this article
Open WeChat and scan the QR code