NIO Inc. (NIO) - Not Halal (Non-Compliant)
NIO Inc. (NIO) is classified as Not Halal (Non-Compliant) according to AAOIFI Shariah screening standards. This assessment is based on business activity screening and financial ratio analysis using the AAOIFI methodology.
Business Activity Screen
- Sector
- Consumer Cyclical
- Industry
- Auto Manufacturers
- Result
- Pass
- Reason
- The sector "Consumer Cyclical" and industry "Auto Manufacturers" are not in the excluded categories.
Financial Ratios
- Debt Ratio
- Value: 33.9% | Threshold: 30% | Result: Fail
- Cash & Interest-bearing Securities Ratio
- Value: 50.4% | Threshold: 30% | Result: Fail
- Non-Permissible Income Ratio
- Value: 0.9% | Threshold: 5% | Result: Pass
Dividend Purification
Purification percentage: 0.87%.Based on the company's financial statements, approximately 0.87% of dividend income should be donated to charity for purification. This is derived from identified interest income (0.87% of total income). Some scholars may differ on the exact calculation method.
About NIO Inc.
NIO Inc. designs, develops, manufactures, and sells smart electric vehicles in China, Europe, and internationally. It offers five and six-seater electric SUVs, as well as smart electric sedans. The company also offers power solutions, including Power Home, a home charging solution; Power Swap, a battery-swapping service; Power Charger and Destination Charger; Power Mobile, a mobile charging service through charging vans; Power Map, an application that provides access to a network of public chargers and their real-time information; and One Click for power valet service. In addition, it provides repair, maintenance, car beauty, and inspection services through its service centers and authorized third-party service centers; vehicle transportation and delivery, pre-delivery inspections, guidance on vehicle features, assistance with vehicle registration, and insurance processing services; insurance, maintenance, repairs, accident rescue, car washing, chauffeur services, and valet parking services; and remote monitoring and real-time diagnostics services, as well as technical, warranty, and auto financing arrangements. Further, the company is involved in the provision of energy and service packages to its users; design and technology development activities; manufacture of electric powertrains, battery packs, and components; and sales and after-sales management activities. Additionally, it operates in app NIO Auto Mall where users can select from various accessories and value added services; and online auction platform. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was incorporated in 2014 and is headquartered in Shanghai, China.