Weilai issued an announcement: The Grizzlies short report contains a large number of errors and considers taking appropriate actions to protect the interests of all shareholders

On June 29th, the Hong Kong stock market Weilai fell nearly 10%, and Weilai Automobile applied for a suspension of trading on the Singapore Exchange.

NIO issued an announcement on the shorting by Grizzly Research, saying that the report was worthless and contained numerous errors, unsubstantiated speculations, and misleading conclusions and explanations related to the company.The company's board of directors, including the audit committee, is reviewing the allegations and considering appropriate action to protect the interests of all shareholders.

NIO said the company will make additional disclosures in due course in accordance with the applicable rules and regulations of the Securities and Exchange Commission, the New York Stock Exchange, the Stock Exchange of Hong Kong Limited and the Singapore Exchange Securities Trading Limited.

Grizzly Research, a short-selling agency, previously published a report saying that Weilai followed Valeant-style accounting games to achieve its goals by inflating revenue and improving net profit margins.The agency said that NIO may use unconsolidated related parties to inflate revenue and profitability, clearly pointing out Wuhan NIO's role in it, saying that the company has helped NIO continue to achieve high growth and profitability expectations. The combined related parties have generated billions of dollars in revenue for NIO.The agency also alleged that Li Bin, chairman of Weilai, was closely related to Liu Erhai and the Joy Capital founded by him, and that the latter two were the core parties in the Ruixing performance fraud case.

According to NIO's data, in May 2022, NIO delivered a total of 7,024 new cars, both increasing year-on-year and month-on-month.The smart electric flagship sedan ET7 delivered 1,707 units in the month.As of May 31, NIO has delivered a total of 204,936 new vehicles.