File photo/Zhang Jian (NBD)

May 29 (NBD) -- Chinese electric carmaker NIO Inc. (NYSE: NIO) has signed a framework agreement with Beijing E-Town International Investment & Development Co. (E-Town Capital) to form a joint venture.

An insider with NIO told National Business Daily (NBD) on Tuesday that under the framework agreement, NIO will set up "NIO China" in Beijing and inject "specific businesses and assets" into the new entity, while E-Town Capital will contribute 10 billion yuan in exchange for a minority equity stake of NIO China.

The source with NIO also said to NBD that E-Town Capital will give a hand or bring in a third party to help NIO China build a new manufacturing facility to produce the ET series on the next-generation NP2 platform that will feature Level 4 autonomous driving capabilities.

On May 28, NIO reported unaudited financial results for the first quarter ended March 31, 2019. The EV startup grossed a total revenue of 1.63 billion yuan (236.3 million U.S. dollars) in the first three months of 2019, representing a decrease of 52.5 percent from the fourth quarter of 2018.

Deliveries of the ES8 reached 3,989 units in the first quarter of 2019, compared with 7,980 vehicles delivered in the fourth quarter of 2018.

The good news is that NIO witnessed a narrowed net loss for Q1 of 2019. The automaker's net loss stood at 2.62 billion yuan, down 25.1 percent from the fourth quarter of 2018.

Prior to the release of the earnings report, analysts expected NIO's first-quarter net losses to increase, according to data compiled by Thomson Reuters.

NIO's U.S.-listed shares closed up 3.63 percent to 4 U.S. dollars in market trade after the company reported better-than-expected Q1 results.

Email: gaohan@nbd.com.cn