1. Weilai Auto encountered short selling by grizzly institutions?
According to The Paper reports, NIO, which is listed in the United States, Hong Kong and Singapore, encountered a sudden attack by Grizzly Research, an overseas short-selling organization.
, a short-selling agency, recently issued a report saying that NIO is likely to use an unconsolidated related party - Wuhan Weineng to exaggerate its revenue and profitability. They believe that NIO is being supported by financial tricks, and Rife with corporate governance red flags.
Weilai responded that the report was full of false information and misunderstanding of the information disclosed by Weilai. NIO has always complied with the relevant rules for listed companies and has currently initiated relevant procedures for this report. Please pay attention to subsequent announcements.
html On June 29, NIO issued an announcement on the Singapore Exchange and applied for a trading suspension; Hong Kong stocks fell 9.4% as of press time. A report fromGrizzly Research stated that by over-supplying batteries to Wuhan Weineng and boosting revenue in advance, Weilai falsely reported revenue of 2.6 billion yuan in the nine months to September 2021 (approximately 10% of the revenue during that period). 10%). To make matters worse, the reportable net loss for the period was RMB 3.6 billion, which was double NIO's actual reported loss.
Grizzly Research released a short-selling report on 58 city in February 2020. At that time, it pointed out that 58 had inflated its revenue and merged with Ganji.com to provide false transactions and management benefits.
2. Can NIO succeed this time?
To be honest, seeing that NIO has been heavily criticized by international short sellers, many people are worried about the development of NIO. Will NIO be abandoned by the market in the future?
First of all, we must understand that for the current entire market, it is actually a normal phenomenon for short-selling institutions to short Chinese concept stocks . As we said before, a large number of companies with Chinese concept stocks have been shorted before. Institutions have shorted before, but there are cases of successful shorting, but there are also cases of unsuccessful shorting. Both are actually possible, so we also have enough patience to look at the trend of the entire market. For the current NIO, In other words, it can be said that it is facing relatively large market pressure, and it must have certain hedging capabilities to hedge market risks. However, we don’t need to worry too much about NIO. There have been many successful precedents in resisting short selling before. Therefore, for the current NIO, we must calm down and analyze what is going on with ourselves. Through a series of Measures should be taken to truly deal with the current short selling by short selling institutions.
Secondly, for these short-selling institutions, some of them have seriously investigated what this company is like? However, most short-selling institutions actually only conduct short-selling based on possible logical loopholes and contradictions in the financial reports of listed companies. This kind of short-selling is likely to cause problems, so we see that for Grizzly Bear Company, Many of their short-selling actions are based on contradictions. In fact, there is a lack of on-site investigation of NIO, which also leads to NIO having enough confidence to fight against Grizzly Bear's short-selling. For these short-selling institutions, short-selling Chinese companies often use a series of capital market operations, such as shorting the listed company's own stock through margin financing, and then suppressing the stock price of the listed company by releasing news. To obtain high benefits, NIO may face dual pressures from public opinion to the capital market for the entire current market.
Thirdly, for the current NIO, although we can say that there is no need to worry too much about this kind of short selling, NIO must also have certain considerations. The core reason why these short-selling institutions are targeting NIO , in fact, NIO has never been profitable, but it has continued to raise funds. Under such circumstances, for a company that has not yet made a profit, due to its own fundamentals and lack of superior performance, in the end As a result, it is easy for short-selling institutions to take advantage of the opportunity to criticize. Therefore, for the current Weilai Automobile, the most important thing to do is to truly promote the growth of performance and use impressive performance to prove its strength to the capital market. This may be the only way to It is currently the most effective method for NIO.
