China’s star electric vehicle maker claims former chief fled to the US after embezzling company funds
- YLE says it has filed several cases against its former chairman and major shareholder, as well as a former general manager involved in stealing US$175 million
- It alleges that the former chairman may have spent a portion of the stolen funds at casinos in Macau
A leading electric vehicle manufacturer in China has alleged that its former chairman and general manager together embezzled more than 1.2 billion yuan (US$175 million) from the company, with a considerable portion of that amount spent at casinos in Macau.
The company, Zhuhai Yinlong Energy (YLE), has been one of China’s shining stars in the new energy industry over the past few years. Leveraging on its strength in lithium battery development, YLE in 2016 received more than 3 billion yuan worth of investment from a consortium led by China’s “home appliance queen” Dong Mingzhu and former richest man Wang Jianlin’s Dalian Wanda Group.
The company ranked No 5 in sales of buses in the mainland in the first 11 months of 2018, tailing rivals including Shenzhen-based BYD, according to industry association data.
According to a statement posted on the company’s official WeChat account on Wednesday night, YLE had filed several cases against its major shareholder and former chairman Wei Yincang, and former general manager Sun Guohua. The cases had been accepted by related courts, and the duo’s encroachment of the company’s interests surpassed 1.2 billion yuan, it said.
“The company has confirmed that Wei left Hong Kong for the United States in December, but Sun has been barred from leaving the country,” said the statement.