A Reuters report on Tuesday said that when applying for a 100 million yuan (US$14.3 million) bank loan, Megvii said it’s for developing “technology including means to improve the accuracy of identifying masked individuals in crowds.” The detail triggered widespread reactions on Chinese social media, with some users calling it scary.

But Megvii says the technology has been “misunderstood.” In an article posted on WeChat on Wednesday, the company explains that facial recognition is a part of its remote fever detection system. The system helps quickly locate a person’s forehead so that infrared imaging scanners can check a person’s temperature. Megvii said it does not verify people’s identities. AI companies in China have rolled out AI-powered temperature screening systems in railway stations, subway stations and government buildings to help fight the spread of the coronavirus outbreak.