suffered a car crash on the front foot, and was targeted by short-selling institutions on the back foot, causing the stock price to fall. Weilai Automobile has been in bad luck recently.
According to news on June 29, in response to being shorted by Grizzly Research, NIO responded that the company had observed the report, but it was filled with a large amount of false information and misunderstandings about the information disclosed by NIO. read. NIO has always strictly complied with the relevant standards for listed companies and has currently initiated relevant procedures for this report. Please pay attention to subsequent announcements.
NIO
Grizzly Bear’s short-selling report is titled “We believe that NIO is using accounting games like Valeant to achieve its goals by exaggerating revenue and increasing net profit margins.” In short, it is inflating revenue and profit margins. “Wuhan NIO allows NIO to immediately recognize revenue from the batteries they sell, rather than recognizing revenue over the subscription period (approximately 7 years). With this arrangement, we believe NIO has increased this by recognizing revenue for 7 years in advance. One number.”
The agency said that Weilai’s spin-off of the battery rental business into an independent company has three purposes. One is to include users’ subscription fees for the next few years into the current financial report at one time; the other is to create a company that is willing to over-purchase batteries. third party; the third is to remove battery impairment charges from the balance sheet.
Affected by the short-selling report, NIO’s stock price once plunged to $22.02. As of now, NIO has fallen 2.77% to US$22.32, with a market value of US$37.7 billion.
