(Yicai) June 17 -- Wang Xing, founder of Chinese on-demand services platform Meituan and the second-largest shareholder of Li Auto, has further trimmed his stake in the electric vehicle maker, cashing out about HKD650 million (USD82.8 million).

In the latest of a series of sales over the past two years, Wang shed about 5.7 million Li Auto shares between June 10 and 13, paring his stake to 20.6 percent from 20.9 percent, according to a stock exchange filing. The shares were sold for between HKD109.86 and HKD117.10 (USD14 and USD14.90) each.

Li Auto [HKG: 2015] fell 2.3 percent to HKD108.60 a share in Hong Kong today, while its US-listed stock [NASDAQ: LI] rose 1.6 percent to USD28.20 yesterday.

Since the first quarter of 2023, Wang has reduced his holdings in the Beijing-based EV maker by about two percentage points, but remains the largest shareholder after founder Li Xiang and continues to serve as a non-executive director.

The latest divestment likely reflects a personal portfolio rebalancing by Wang, while his retention of a substantial holding in Li Auto signals ongoing confidence in the company’s prospects, Yu Fenghui, an advisor at the Top 100 Hong Kong Listed Companies Research Centre, told Yicai.

Founded in 2015, Li Auto became China’s first profitable EV startup in 2023, with a net income of CNY11.7 billion (USD1.6 billion). However, growing competition in the domestic EV market over the past two years has weighed on its profitability.

Last year, net profit fell 31 percent to CNY8 billion (USD1.1 billion), despite a 17 percent gain in revenue to CNY144.5 billion (USD20.1 billion). In the first quarter of this year, the company returned to profit growth, posting a 10 percent increase from a year ago to CNY650 million (USD90.5 million). But revenue growth slowed to just 1.1 percent, reaching CNY25.9 billion.

Meituan is also facing growing competition in its core takeout business, after internet giant JD.Com plunged into the food‑delivery arena. On May 26, Wang stated during an earnings conference call with analysts that the Beijing-based company would “spare no effort to win this battle.”

Editor: Emmi Laine