Xpeng CEO increased stake in his company in Hong Kong and US stock markets, and plans to increase it further.
Xpeng (NYSE: XPEV) chairman and CEO He Xiaopeng has increased his stake in his company in an attempt to revive investor confidence.
As Xpeng's controlling shareholder, Mr. He purchased a total of 1 million Class A ordinary shares of the company in the Hong Kong stock market on August 21-23 at an average price of HK$27.13 per Class A ordinary share, according to a Hong Kong stock exchange announcement today.
Mr. He also purchased a total of 1,419,922 American Depositary Shares (ADSs) of Xpeng through Galaxy Dynasty Limited, which is wholly owned by him, at an average price of $7.02 per ADS.
Mr. He informed Xpeng that he planned to further increase his shareholding in the company, according to the announcement.
Following these transactions, Mr. He's shareholding in Xpeng increased to about 18.8 percent.
The board of directors of Xpeng considers that the acquisition demonstrates Mr. He's confidence in the prospects and growth potential of the company and his long-term commitment to Xpeng, according to the announcement.
Like its local peers, Xpeng shares have continued to fall this year, as China's economy faces downward pressure.
As of Friday's close, Xpeng's Hong Kong-traded shares and US-traded ADSs were at HK$27.15 and $7.01, respectively, both down about 50 percent for the year.
Xpeng delivered 11,145 vehicles in July, up 1.24 percent year-on-year and up 4.47 percent from June.
This was the fifth consecutive month-over-month increase in Xpeng's monthly deliveries, but still only about half of the more than 20,000 monthly deliveries in the fourth quarter of last year.
In the January-July period, Xpeng delivered 63,173 vehicles, up 20.46 percent year-on-year.
The company will launch the first model of its Mona lineup, the M03, which will be its cheapest model, on August 27.
The Xpeng Mona M03 will have a starting price of no more than RMB 135,900 ($19,030), the company said earlier this month.
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