Nio chip subsidiary secures CN¥2.26bn investment

Nio has announced that its subsidiary GeniTech (Shenji), which is responsible for the automaker’s intelligent-driving chip business, has entered into definitive agreements to receive CN¥2.26bn in investment from a group of investors in China. The transaction is subject to customary closing conditions.

Under the terms of the agreements, the investors will subscribe for newly issued shares in Shenji. Upon completion, a Nio subsidiary will retain a controlling equity interest of 62.7% in Shenji, while the investors will collectively hold 27.3%. Entities administering Shenji’s share incentive plan will hold the remaining 10%.

Nio said it will continue to consolidate Shenji’s financial results following the transaction.

Source: Nio