Nio board forms independent committee to oversee probe into short-seller allegations
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Grizzly Research claimed that Nio had been playing "accounting games" to inflate its revenue and boost net income margins.
PHOTO: REUTERS
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SINGAPORE (THE BUSINESS TIMES) - The board of Chinese electric vehicle maker Nio has formed a committee comprising independent directors Denny Ting Bun Lee, Hai Wu and Yu Long to oversee an independent investigation regarding the allegations made in a report by short-seller Grizzly Research.
The short-seller claimed on June 28 that Nio had been playing "accounting games" to inflate its revenue and boost net income margins. It also said that Nio was likely using an unconsolidated related party to exaggerate the group's revenue and profitability, among other allegations.
Nio announced late on Monday (July 11) that the independent committee has retained independent professional advisers to assist with the probe, including an international law firm and a "well-regarded" forensic accounting firm.
"The company reiterates its continued and unwavering commitment to maintaining high standards of corporate governance and internal control, as well as transparent and timely disclosure in compliance with applicable rules and regulations," Nio said.
Nio's dual-class shares closed 3.9 per cent or US$0.84 higher at US$22.23 last Thursday, before the announcement on July 11. Its Class A ordinary shares on the Singapore bourse are fully fungible with its New York Stock Exchange-traded shares.
