Hong Kong-listed Success Universe Group Ltd has disposed of part of its shares in electric car maker Tesla Inc, resulting in a financial gain of HKD30.8 million (US$4.0 million).
From November 14 to December 12, Better Talent Ltd (BTL), a wholly-owned subsidiary of Success Universe, sold 23,500 Tesla shares on the open market, the parent said in a filing on Friday.
The latest disposal occurred on December 12, when BTL sold 19,500 Tesla shares. That transaction generated approximately US$8.3 million, excluding transaction costs.
Combined with the earlier Tesla share sales since November 14, BTL realised a total of approximately US$9.8 million, excluding transaction costs.
Success Universe still retains a stake in Tesla. Prior to the transactions, the company held 96,750 Tesla shares; this has now been reduced to 73,250 shares, which are described by the Hong Kong-listed company as “financial assets”.
Success Universe is a partner in Ponte 16 – a waterfront property (pictured) in Macau’s Inner Harbour district – alongside a subsidiary of Macau casino operator SJM Holdings Ltd. The gaming venue at the complex is considered a “satellite” operation of SJM Holdings.
Last month, the local government approved the long-anticipated expansion of non-gaming facilities at Ponte 16, along with a renewed and amended public land concession for the property. Permitted facilities, according to the announcement, include a “commercial building”, a “plaza”, and a “vessel” named Macau Palace. Work is expected to begin in the first half of 2025.
The board of Success Universe described the Tesla disposals as a strategic move to capitalise on the electric car maker’s recent share price performance. The sales “represented a good opportunity to realise a reasonable return from part of the group’s investment in Tesla shares,” the firm said in its filing on Friday.
The proceeds, Success Universe added, will be used for “general working capital” and the “repayment of its borrowings.”
The Tesla share sales are expected to result in a gain of HKD30.8 million for the financial year ending December 31, 2024. This gain reflects the difference between the gross proceeds from the sales and the fair value of the Tesla shares as of the end of 2023, said Success Universe.
The firm posted a net loss of just under HKD35.5 million for the first half of 2024. This compares with a HKD153.8-million profit recorded in the same period a year earlier.
