Nio (NYSE:NIO) is in the spotlight after the Chinese electric vehicle (EV) company confirmed August 25 as the date for its annual general meeting (AGM). Any shareholder of NIO stock can cast their votes online or through the mail for any proposals prior to the meeting. At the meeting, votes will be tallied up to decide on five resolutions. One of these resolutions is whether 132,030,222 unissued Class B ordinary shares will be converted into 132,030,222 Class A ordinary shares. The board also seeks to retain Big Four accounting firm PricewaterhouseCoopers (PWC) as Nio’s auditor until the next AGM.
Shares of NIO have plummeted by over 40% year-to-date (YTD) due to ongoing lockdowns in China. As a result of these lockdowns, citizens have been staying inside and spending less money. In addition, lockdowns have disrupted the Chinese supply chain, making it more difficult for Nio to acquire supplies.
During June, Nio delivered 12,691 vehicles, up 60.3% year-over-year (YOY). During Q2, the company delivered a total of 25,059 vehicles, up 14.4% YOY. In addition, China has rolled out several incentives to improve demand for EVs, such as more lenient credit policies. In June, lenders granted more than $8 billion in credit for car purchases, up 37.5% month-over-month.
With that in mind, let’s get into the details of the AGM.
NIO Stock: Annual General Meeting Set for August 25
The remaining three resolutions deal with a change to Nio’s Articles of Association and a dual foreign name. Nio’s board seeks to substitute its Twelfth Amended and Restated Memorandum of Association and Articles of Association and replace it with the Thirteenth Amended and Restated Memorandum and Articles of Association. The new memorandum would remove the shareholding structure of Class B shares and any provisions related to the shares. It also provides details on postponing meetings and general meeting conduct. Finally, the last proposal seeks to adopt “蔚來集團” (NIO Group) as the company’s dual foreign name.
Shareholders are also anticipating any updates to the Grizzly Research short report. The report alleges that Nio has been inflating its revenue and net income margins through its battery asset management provider, Wuhan Weineng. In response, Nio stated that it had formed an independent committee to investigate the allegations. There have been no further updates, although NIO investors are certainly eager to hear more.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
