Anhui Jianghuai Automobile Group Corp., which makes electric vehicles for US-listed Nio Inc., is selling a car factory and other assets worth an estimated 4.5 billion yuan ($615 million).
(Bloomberg) — Anhui Jianghuai Automobile Group Corp., which makes electric vehicles for US-listed Nio Inc., is selling a car factory and other assets worth an estimated 4.5 billion yuan ($615 million).
Some assets are from two manufacturing facilities that produce Nio EVs and started operating in 2018 and 2022, China Securities Journal reported.
Anhui Jianghuai said in a stock exchange filing that the sales, which include equipment and inventory, will help improve its asset structure and won’t affect operations. In a statement to Bloomberg News, Nio said it is aware of the situation at its partner and also added that it won’t affect production.
Read More: Nio Has Been at the Brink Before. Can the EV Maker Rally Again?
Bloomberg reported last month that Nio is considering raising about $3 billion from investors. That followed a June announcement that an investment entity controlled by the Abu Dhabi government was taking a 7% stake in Nio for about $738 million.
The moves have heightened concerns about the financial health of Nio, which was founded in 2014 and still hasn’t posted a profit. In the second quarter through June, it reported a worse-than-expected loss of 6.1 billion yuan.
Nio’s deliveries slid 19% in September from the previous month to 15,641 EVs. It sold more than 55,000 units in the third quarter as a whole.
William Li, Nio’s founder and chief executive officer, has previously said the company had to delay investment in fixed assets, postpone some research and development plans and take a more cautious approach to expanding overseas.
Nio’s US shares have tumbled 88% from a September 2021 peak. Its Hong Kong-listed shares slid 3.7% Friday following a drop of 8% Thursday.
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