FDG Electric Vehicles Shares Jump as Billionaire Invests

FDG Electric Vehicles Ltd. jumped 25 percent in Hong Kong trading, the most in 17 months, after Asia’s richest man bought a minority stake in the electric vehicle and lithium-ion battery developer.

The shares climbed to 60 Hong Kong cents, raising gains this year to 56 percent, after FDG Deputy Chairman Miao Zhenguo on Friday sold about 4 percent of the total issued capital, 800 million shares, at 46 Hong Kong cents apiece. The buyers were billionaire Li Ka-Shing, with 743 million shares, and Lo Ka Shui, chairman of Great Eagle Holdings, with the remainder.

Interest in lithium-ion battery-powered transit and delivery vehicles has been growing in densely populated areas such as Chinese cities, according to Colin McKerracher, an analyst at Bloomberg New Energy Finance in London.

“We’ve seen a steady increase in interest around electric buses and commercial fleet vehicles driven by urban air-quality issues in cities such as Beijing,” McKerracher said. “The economics are also improving as prices for electric vehicle lithium-ion batteries have continued to fall, down an average of 14 percent per year over the last five years.”

FDG said in a statement in May that its annual revenue surged 266 percent to HK$307 million ($39.6 million) from the year before. Gross profit soared 971 percent to HK$74.3 million.

That same month, FDG signed a joint venture with Smith Electric Vehicles to sell its products in the U.S. The company invested $42 million in the Kansas City, Missouri-based electric truck maker last year.

Li Ka-Shing is the 19th richest person globally, according to data compiled by Bloomberg. He controls CK Hutchison Holdings and Cheung Kong Property Holdings, both based in Hong Kong. His investment in FDG Electric Vehicles was through Lucky River Holdings, a company he owns.

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