• "This matter is not a newly occurring incident, nor is it directed at Nio's recent operational performance," Nio said in a response shared with CnEVPost.
• The incident stems from a short-selling report released in June 2022, which contained numerous errors, unfounded speculations, and misleading conclusions, Nio said.

Nio Inc (NYSE: NIO) has responded to a lawsuit filed by Singapore's sovereign wealth fund GIC Private Limited, following a sharp decline in its stock price earlier today due to concerns over the potential impact of the incident.

"This matter is not a newly occurring incident, nor is it directed at NIO's recent operational performance," Nio said in a response shared with CnEVPost.

The matter stems from false allegations made against Nio in a short-selling report published by Grizzly Research LLC in June 2022, the company noted.

The report lacks substantiation and contains numerous errors, unfounded speculations, and misleading conclusions, Nio said.

To protect the interests of all shareholders, Nio's independent board committee completed an independent internal investigation into the short-selling report in August 2022, assisted by third-party international law firms and forensic accounting firms.

The investigation found the allegations had no factual basis, Nio reiterated.

In its June 28, 2022 report, Grizzly alleged that Nio was playing an accounting game similar to Valeant's to inflate revenue and boost profit margins.

The short seller suspected Nio likely used an unconsolidated affiliate, Mirattery, or Wuhan Weineng, to exaggerate revenue and profitability.

GIC initiated litigation against Nio in a US court in August based on the concerns raised in Grizzly's short-selling report.

The case was temporarily stayed earlier this month in a US court pending a prior class action lawsuit.

Following extensive media coverage of the lawsuit, Nio's shares traded in Hong Kong plummeted today, closing down 8.99 percent.

Mirattery was established on August 18, 2020, through joint investment by CATL, Nio, Guotai Junan, and Hubei Science Technology Investment.

In August 2020, Nio launched its BaaS battery rental service, with Mirattery serving as the operator of these leased battery assets.

The core of GIC's dispute centers on Nio's relationship with Mirattery and the company's revenue recognition practices.

GIC alleges Nio inflated revenue through Mirattery, misleading investors and causing GIC losses.

As a company listed on the US, Hong Kong, and Singapore stock exchanges, Nio has consistently adhered to compliance and corporate governance requirements across these markets, the company said in its response today.

Since its launch, the BaaS model has provided users with an optimal experience in vehicle purchase and usage, while contributing to advancements in the lifespan of batteries, it noted.

Moving forward, Nio will continue advancing battery technology, innovating business models, creating greater value for users, and promoting the healthy development of the electric vehicle industry, the company said.