On 1 December 2017, a wholly-owned subsidiary of the Company entered into a preferred share purchase agreement with NIO, pursuant to which the Group, as one of the investors, agreed to subscribe for the preferred shares newly issued by NIO at a consideration of US$25.00 million. NIO is an independent third party of the Group. In September 2018, NIO completed the initial public offering of 160,000,000 ADSs on the New York Stock Exchange. The issue price was US$6.26 per ADS, and the total offering size was approximately US$1.0 billion. Each ADS represents one Class A ordinary share of NIO.
NIO’s second 5-seat high-end pure electric SUV model ES6 was delivered to consumers in June 2019. In February 2020, NIO announced that it completed the issuance of US$435 million convertible bonds with various independent third parties, In April 2020, NIO completed the entering into the agreement in relation to the investment to NIO China, a domestic subsidiary of NIO, with strategic investors, including Hefei City Construction and Investment Holding (Group) Co., Ltd., CMG-SDIC Capital Co., Ltd. and Anhui Provincial Emerging Industry Investment Co., Ltd., and reached an agreement with Hefei Economic & Technological Development Area in respect of the settlement of NIO’s China headquarter. As at June 2020, NIO and the aforesaid investors have injected capital of RMB7.356 billion in NIO China as scheduled. In June 2020, NIO completed a placing of 72 million U.S. Depository Shares at a price of US$5.95 per U.S. Depository Share and raised approximately US$428 million.
On 6 March 2019, the Board approved the potential disposal of the NIO ADSs held by the Company on the New York Stock Exchange, which was also approved by CDBIH in written. Please refer to the relevant announcement published by the Company on 6 March 2019. As at 30 June 2020, no disposal related to NIO has been made. From 1 July 2020 to 8 July 2020, the Company completed the disposal of an aggregate of 4,670,362 ADSs of NIO Inc. with the average price of approximately US$9.84 (equivalent to approximately HK$76.28) per ADS. For more details, please refer to the announcement published by the Company on 9 July 2020.