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China Fund News reporter Wen Xi

On July 17, NIO announced on its official Weibo account that NIO Energy and Huawei's Hongmeng Intelligent Driving have reached a service cooperation, and the NIO Energy charging network will be open to Hongmeng Intelligent Driving brand models (including Wenjie, Zhijie, Xiangjie, etc.).

Starting from July 17, Hongmeng Zhixing users can find and use NIO Energy charging piles across the country through the Hongmeng Zhixing App, AITO App, and Wenjie, Zhijie, and Xiangjie car machines.

In fact, there were already signs that NIO would open its charging network to Hongmeng Zhixing.

On July 11, Ma Lin, assistant vice president of brand and communication at NIO, wrote: "In addition to building battery swap stations this year, NIO Energy will continue to build a large number of charging piles. Most of the battery swap stations built this year will also be integrated charging and swap stations, serving users of various brands of vehicles including Hongmeng Zhixing."

Since last year, more and more car companies have joined NIO's energy replenishment "circle of friends". Two months ago, NIO Energy and Zhiji Auto reached a cooperation on charging network interconnection.

Like Hongmeng Zhixing, Zhiji Auto users can also view the location, price, status, usage and other information of NIO charging piles across the country in real time through the App and the car charging map. They can quickly complete operations such as scanning codes to charge and pay for orders, and directly deduct the electricity usage rights of Zhiji users.

Zhiji has also become another new energy vehicle brand that has achieved charging interconnection with NIO, in addition to Changan, Geely, SAIC-GM, Xpeng, Jiyue, Lotus and other automakers.

NIO Energy has established a nationwide charging network and opened it to the entire industry for sharing. More than 80% of the electricity is used by non-NIO users. As of July 17, NIO Energy has deployed 3,904 charging stations and 22,822 charging piles across the country, with an average daily availability rate of 99.72%.

It is worth mentioning that the charging business is also one of the few profitable businesses of NIO. As early as the middle of last year, NIO's CEO Li Bin revealed that NIO's charging business has achieved profitability, and 70% to 80% of its charging piles are used by other brands.

According to NIO's 2023 financial report, its "energy service system" achieved revenue of 1.67 billion yuan, accounting for 3% of its total revenue in 2023. However, the scope of "energy service system" is broader, covering businesses including sales of charging piles, charging and battery replacement services, battery upgrade services, BaaS battery buyout services and other energy service system services.

However, NIO's battery swap business has not yet reached break-even. In the first quarter conference call, Li Bin revealed that NIO's battery swap station can break even if it provides 60 services per day, but now the average is 30 to 40 orders.

"We are very optimistic about the long-term sustainability of NIO Energy's operations. Considering the investment in energy storage, flexible upgrades and other areas, we have no doubt about the profitability of the battery swap stations," said Li Bin.

Also since last year, several car companies have joined NIO's battery swap network. Since November 2023, NIO has officially announced battery swap cooperation with Changan Automobile, Geely Automobile, Chery Automobile, JAC Group, Lotus, GAC Group, and FAW Group. In the industry's view, more partners joining the battery swap alliance can reduce the losses caused by the construction of the energy replenishment system to a certain extent.

Editor: Joey

Review: Xu Wen

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