By Yongchang Chin
NIO Inc.’s shares in Hong Kong extended declines in afternoon trading after the company denied accounting allegations in a report by short seller Grizzly Research LLC.
The stock fell by as much as 10% to 167.80 Hong Kong dollars (US$21.38) on Wednesday and was recently 9.3% lower at HK$169.50.
Grizzly Research in its report said the Chinese electric-vehicle maker is playing “accounting games to inflate revenue and boost net income margins to meet targets.”
In response, NIO said that the report is “without merit and contains numerous errors, unsupported speculations and misleading conclusions.”
The Chinese EV maker also said it will make additional disclosures in due course and is considering an appropriate course of action to protect shareholders’ interest.
Write to Yongchang Chin at email@example.com