NIO denied accounting allegations in a report by short-seller Grizzly Research.
stock dropped more than 12% in Hong Kong on Wednesday after the company denied a report published by short-seller Grizzly Research claiming that the Chinese electric-vehicle maker is exaggerating revenue and profit margin.
In its report on Tuesday, Grizzly Research said that NIO (ticker: NIO) is playing “accounting games to inflate revenue and boost net income margins to meet targets.”
In response, NIO said in a statement 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 trading, American depositary receipts of NIO dropped 5.8%.
NIO added that it was reviewing the allegations and considering an appropriate course of action to protect shareholders’ interest, and will make additional disclosures in due course.
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