Nio (NYSE: NIO) is in talks with a potential buyer to sell a stake in a key asset, Chinese tech media outlet LatePost reported last night.
The report did not provide further details on the matter, but suggested it's part of Nio's efforts to bolster liquidity.
As of the end of the first quarter, Nio's cash position stood at RMB 26 billion ($3.6 billion), a decrease of RMB 15.9 billion from the end of last year, according to its financial results released yesterday.
The company noted that its shareholders' equity turned negative as of the end of the first quarter, but emphasized that its current financial resources are sufficient to support normal operations for the next 12 months.
Nio CFO Stanley Qu said during yesterday's earnings call that the significant decrease in cash flow was due to a decrease of nearly 30,000 vehicles in deliveries compared to the fourth quarter of 2024, resulting in an outflow of about RMB 10 billion in operating cash alone.
In April, Nio completed a RMB 4.03 billion equity placement to supplement liquidity, LatePost's report yesterday noted.
Based on second-quarter sales guidance, Nio's cash flow would significantly improve and gradually return to normal, Qu said yesterday.
LatePost's report did not specify what the Nio asset is, but it is likely related to battery assets.
On March 18, Nio announced a partnership with its battery supplier CATL (SHE: 300750) to jointly build the world's largest battery swap service network.
The two parties will also engage in capital cooperation, with CATL advancing an investment of up to RMB 2.5 billion in Nio's energy unit, Nio Power, according to a statement at the time.
On March 20, domestic media outlet 36kr reported that CATL, in addition to investing in Nio Power, also aims to increase its stake in Mirattery, Nio's battery asset operator.
Mirattery was established on August 18, 2020, as a joint venture between CATL, Nio, Guotai Junan, and Hubei Science Technology Investment.
In August 2020, Nio launched its BaaS (battery as a service) battery rental business, with Mirattery serving as the manager of the batteries.
On April 7, Reuters reported that CATL was in talks to acquire a controlling stake in Nio Power.
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