Saudi Press

Saudi Arabia and the world
Sunday, Jun 22, 2025

Li Ka-shing files bankruptcy petition against electric carmaker chief

Li Ka-shing files bankruptcy petition against electric carmaker chief

Hong Kong billionaire Li Ka-shing, known for his prescient and successful investments in industries ranging from property to infrastructure, has hit a speed bump as far as his foray into the electric-vehicle sector is concerned. Li’s investment in Hong Kong-listed FDG Electric Vehicles has shrunk by more than 40 per cent in value. Stock of We Solutions, another firm Li has invested in, drops 1.1 per cent on Monday.

Hong Kong billionaire Li Ka-shing, known for his prescient and successful investments in industries ranging from property to infrastructure, has hit a speed bump as far as his foray into the electric-vehicle sector is concerned.

His four-year-old investment in FDG Electric Vehicles, a Hong Kong-listed Chinese maker of new-energy vans and buses, has shrunk by 42 per cent in value. Over the weekend, he filed a bankruptcy petition against Cao Zhong, FDG’s chairman, through his foundation in Canada.

Shares of FDG, which is based in the eastern Chinese city of Hangzhou, tumbled 29 per cent to 26.5 HK cents on Monday, extending its losses to 73 per cent this year. FDG was unable to assess the impact of Li’s petition on the company as the petition was still at a preliminary stage, it said in an exchange filing with the Hong Kong bourse.

Li now holds a 2.1 per cent stake in FDG, as its fourth-largest shareholder, while Cao has a 4.1 per cent stake and is FDG’s third-largest shareholder. Li bought 743 million shares of FDG for 46 HK cents apiece in 2015, valuing the deal at HK$341.8 million (US$43.6 million).

FDG has been unprofitable over the past few years and its business has worsened recently amid headwinds facing the industry, such as an economic slowdown in China and the government’s scaling back of subsidies on new-energy vehicle purchases. It posted a net loss of HK$1.99 billion for the financial year ending in March, after a loss of HK$2.23 billion for the previous year.


 Superman Li's FDG gamble

The company acknowledged its financial difficulties in its annual report and said it had defaulted on a couple of bank loan repayments, and that it was negotiating with debtors to convert debt into equity and had asked the government for help. One of its subsidiaries, Hangzhou Changjiang Automobile, had even stopped paying employees, the National Business Daily reported in July.

China’s electric-car market, the world’s biggest, is reeling from the partial withdrawal of government subsidies. Sales dropped 4.7 per cent and 16 per cent from a year earlier, in July and August, respectively, after an average 60 per cent cut in subsidies this year. Annual sales had increase at 51 per cent over the past two years.

Another of Li’s investments, in We Solutions, a Hong Kong-based maker of new-energy cars, has not fared well either, with its share price below levels Li bought at in May. Li invested in We Solutions at 51 HK cents a share through a unit of Agile Group Holdings. The stock declined 1.1 per cent to 46.5 HK cents on Monday.

Li is the richest businessman in Hong Kong, with a net fortune of US$28.1 billion, according to Bloomberg.

There is mounting concern Beijing has created an electric-vehicle bubble that may be about to burst. Total sales fell for the first time in July after the government scaled back its subsidies. Deliveries dropped again last month, raising doubts that one of the final pillars of strength in China’s broader car market, which has fallen in 14 out of the past 15 months, is wavering.

Shanghai-based Nio is poised to report on Tuesday that it lost another 2.6 billion yuan (US$369 million) during the second quarter, according to the average of two analyst estimates. That would bring accumulated losses at the company to about US$5.7 billion since William Li Bin founded the carmaker in 2014.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Black Box Recovered from Air India Crash Site
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Global News Roundup: From Ukraine's strategic military strikes and Russia's demands and Tensions Escalate in Ukraine, to serious legal issues faced by Britons in Bali and Trump's media criticism, the latest developments highlight a turbulent landscape
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
×