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Image Source: Visual China
Beijing, July 11 (TMTPOST) – Chinese electric vehicle maker NIO has decided to establish an independent commission to investigate accusations in a report from short-selling firm Grizzly Research, according to the company’s announcement on the Stock Exchange of Hong Kong.
The independent commission consists of independent board directors Li Tingbin, Wu Hai and Long Yu. The independent commission has already hired independent and professional consultants to assist the investigation, including an international law firm and a renowned accounting company.
In late June, short-selling firm Grizzly Research accused NIO of inflating its revenues and boosting profit margin to meet targets. NIO claimed that it discovered that Wuhan Weineng, an unconsolidated related party entity, was used by NIO to inflate its revenues and boost profitability. By selling batteries far in excess of Weineng’s requirements, Grizzly Research estimated that NIO’s net loss should be 95% higher for the nine months ended September 2021.
NIO has refuted the report, claiming that there are a lot of errors and unproven speculations in Grizzly Research’s report. According to NIO, the company’s board and auditing commission are investigating the accusations. The company would take adequate measures to protect the interest of all shareholders.
NIO said that it will make extra disclosure in accordance with relevant rules and regulations of the U.S. Securities and Exchange Commission, the New York Stock Exchange, the Stock Exchange of Hong Kong and the Singapore Exchange.
The company said in an announcement that it will maintain high-standard corporate governance and internal control while making transparent and timely disclosure.
NIO is a Chinese multinational automobile manufacturer headquartered in Shanghai, specializing in designing and developing electric vehicles. The company is known for its development of battery-swapping stations for its vehicles as an alternative to conventional charging stations. NIO is aiming to enter the market in Germany, Denmark, the Netherlands and Sweden in 2022.
