IT House July 11 news, today, Weilai Automobile issued an announcement on the Hong Kong Stock Exchange, the announcement shows that Weilai will set up an independent committee to supervise the independent investigation of the relevant allegations in the grizzly bear short selling report.
The announcement shows that in response to the short-selling report of the short-selling agency Grizzly, Weilai will establish an independent committee composed of independent directors Mr. Li Tingbin, Mr. Wu Hai and Ms. Long Yu to supervise the independent investigation of the relevant allegations in the short-selling report. At the same time, the Independent Committee has hired independent professional advisers to assist in the independent investigation, including an international law firm and a well-known forensic accounting firm.
IT House learned that on June 29, the short-selling agency Grizzly Research published a report saying that Weilai followed Valeant-style accounting games to achieve its goals by inflating revenue and improving net profit margins. At the same time, Weilai may use unconsolidated related parties to inflate revenue and profitability. The report clearly pointed out the role that Wuhan Wei can play in it, saying that the company has helped Weilai continue to achieve high growth and profitability expectations. This unconsolidated Affiliates of NIO have generated billions of dollars in revenue for NIO. In addition, the agency also alleged that Li Bin, chairman of Weilai, was closely related to Liu Erhai and the Joy Capital founded by him, and the latter two were the core parties in the Ruixing performance fraud case.
On the same day, the Hong Kong stock market Weilai fell nearly 10%, and Weilai Automobile applied for a suspension of trading on the Singapore Exchange. And Weilai issued an announcement saying that the report is worthless and contains a large number of 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.
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