NIO submits prospectus, Li Bin donates one-third of shares to establish a trust fund

On August 14, NIO submitted its F-1 prospectus to the U.S. Stock Exchange, planning to raise $1.8 billion.

In the current equity ratio of NIO, Li Bin holds 17.2% and is the largest shareholder of NIO, Tencent holds 15.2% and Hillhouse Capital holds 7.5%.

Li Bin will transfer more than 50 million NIO shares, accounting for one-third of his shareholding, to a trust fund, which will be used to develop user experience. Li Bin will retain the voting rights of these shares and let NIO users discuss and propose how to use the proceeds of these shares.

Li Bin, who graduated with a degree in sociology, has been thinking about the "relationship between individuals and organizations", while NIO is trying to "redefine the relationship between users and enterprises". NIO is trying to differentiate itself from other new car companies, including Tesla, in terms of its service system.

As of July 31, 2018, NIO has received 17,000 ES8 orders with deposits paid, produced more than 1,300 ES8s, delivered 481 ES8s, and raised more than $2.4 billion in financing. As of March 31, 2018, NIO had 2,732 patents worldwide.

In the six months ending June 30, 2018, NIO achieved total revenue of US$6.951 million (RMB 45.991 million), of which US$6.71 million (RMB 44.399 million) was from car sales, and an overall loss of US$526 million (RMB 3.479 billion).

After ES8, NIO will also launch its second SUV model, ES6, before the end of 2018. This is a 5-seater high-performance electric SUV with a lower price than ES8, and its first delivery will begin in the first half of 2019.

Regarding the charging solutions such as battery swapping, "one-click charging", and charging vehicles that have been questioned, NIO stated in its prospectus: "We have limited experience in providing charging solutions, and there may be unexpected challenges that prevent us from providing solutions, or ultimately provide solutions that are more expensive than expected."

After 2019, joint venture and luxury brands such as Volkswagen, Toyota, Audi, and Mercedes-Benz will launch new energy products in the Chinese market. These traditional car companies are more mature in manufacturing and service systems, and NIO will face greater pressure.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.