On November 3rd, Li Bin, founder, chairman, and CEO of NIO, released an internal staff letter titled "Organizational Optimization and Two Year Priorities", mentioning that NIO will carry out adjustments related to organizational and resource investment directions.
Li Bin stated in an internal letter that NIO will carry out "three guarantees" and "two improvements". The "three guarantees" include ensuring long-term investment in core key technologies and maintaining leading advantages in technology and products; Ensure sales and service capabilities are able to cope with fierce market competition; Ensure the timely launch of 9 core products from 3 brands. The "two improvements" include organizational improvement and resource improvement. Organizational efficiency improvement will merge duplicate departments and positions, transform inefficient internal workflow and division of labor, and eliminate inefficient positions; Resource efficiency improvement will delay and reduce investment in projects that cannot improve the company's financial performance within 3 years. This ensures the long-term competitiveness of the company.
A professional familiar with NIO stated that this change in NIO involves organizational adjustment and resource investment direction adjustment, which is conducive to improving organizational efficiency and resource efficiency, and is beneficial for NIO itself. Over the past period of time, NIO has experienced rapid expansion in scale and a significant increase in the number of employees. The rapid expansion of the organization has to some extent resulted in a decrease in human efficiency. At this point, NIO makes organizational adjustments aimed at maintaining healthy organizational mobility.
In addition, projects that have not improved financial performance for NIO for three years will be postponed and reduced, which in the eyes of professionals means that NIO's resource investment direction is more pragmatic and commercial efficient. Moreover, while ensuring core technology investment, long-term and short-term investments can be better balanced.
NIO's recent leading position in the high-end market is further strengthening. This year, NIO has delivered 5 new products and gained over 40% market share in the pure electricity market with a transaction price of over 300000 yuan. Its leading role in the high-end pure electricity market is still evident. Based on sales in recent months, the average sales of NIO exceed 16000 units, with a monthly revenue exceeding 6 billion yuan.
From the perspective of the capital market, NIO is still favored in this year's difficult financing environment. As of June 30, 2023, NIO's cash reserves amounted to 31.5 billion yuan. In July of this year, Abu Dhabi investment firm CYVN completed a strategic investment of approximately $1.1 billion through targeted issuance of new shares and transfer of old shares. In September of this year, NIO successfully issued a total of $1 billion in convertible senior bonds, which will effectively improve NIO's cash flow.
The day before the release of the public letter, the information about NIO's organizational adjustments spread widely, causing widespread attention. NIO's US stock rose 4.5% that night, and NIO's Hong Kong stock rose sharply today, with a maximum of over 7%. (Yi Zhi Wei)