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NIO denied accounting allegations in a report by short-seller Grizzly Research.
Qilai Shen/Bloomberg
NIO
inventory dropped greater than 12% in Hong Kong on Wednesday after the corporate denied a report revealed by short-seller Grizzly Research claiming that the Chinese electric-vehicle maker is exaggerating income and revenue margin.
In its report on Tuesday, Grizzly Research mentioned that NIO (ticker: NIO) is taking part in “accounting games to inflate revenue and boost net income margins to meet targets.”
In response, NIO mentioned in an announcement that the report “is without merit and contains numerous errors, unsupported speculations and misleading conclusions and interpretations regarding information relating to the company.”
Shares in NIO fell 12.1% in Hong Kong on Wednesday to 164.10 Hong Kong {dollars} (US$20.19). In U.S. premarket buying and selling, American depositary receipts of NIO dropped 5.8%.
NIO added that it was reviewing the allegations and contemplating an applicable plan of action to guard shareholders’ curiosity, and can make further disclosures in the end.
Write to Lina Saigol at lina.saigol@dowjones.com
