Quick Takeaways
- Leapmotor secured a massive CNY 6.74 billion war chest to fast-track EV platforms, batteries and software development.
- Strategic Chinese industrial investors have reinforced Leapmotor’s financial base for its next growth cycle.
Leapmotor domestic share subscription activity was disclosed through an HKEX announcement confirming that Zhejiang Leapmotor Technology Co., Ltd. has completed two major equity placements with leading Chinese industrial and investment partners. The transactions strengthen Leapmotor’s capital base as the company accelerates electric vehicle research, platform development, and long-term production planning.
According to the filing, Leapmotor entered into a domestic share subscription agreement with Zhejiang Jinhua Jinyi Hi-tech Industrial Investment Group Co., Ltd., under which 59,964,021 new domestic shares were issued at a price of CNY 50.03 per share. The deal generated roughly CNY 3 billion in fresh capital, reinforcing Leapmotor’s balance sheet and funding capacity.
Leapmotor domestic share subscription with FAW Equity
Earlier, Leapmotor completed a second Leapmotor domestic share subscription by signing a domestic equity agreement with FAW Equity Investment (Tianjin) Co., Ltd. This transaction involved the issuance of 74,832,245 domestic shares, further expanding Leapmotor’s shareholder base and strategic backing from one of China’s most influential automotive investment entities.
Total capital raised and share issuance
Across both placements, Leapmotor issued a combined total of 134,796,266 new domestic shares, bringing total proceeds to approximately CNY 6.74 billion. The capital inflow reflects strong institutional confidence in Leapmotor’s technology roadmap and electric vehicle growth strategy.
The fundraising breakdown includes:
Use of funds and strategic focus
Leapmotor confirmed that the majority of funds will be directed toward innovation and expansion initiatives. Around 70 percent, equivalent to CNY 4.72 billion, is earmarked for research and development, supporting areas such as vehicle platforms, battery systems, and software architecture. The remaining 30 percent, or CNY 2.02 billion, will be allocated to working capital and general corporate purposes, improving operational flexibility and liquidity.
Key focus areas for the investment include:
With these two large capital injections, Leapmotor is positioning itself for its next phase of growth in China’s highly competitive electric vehicle market, while reinforcing financial stability and accelerating product innovation through its Leapmotor domestic share subscription program.
According to the filing, Leapmotor entered into a domestic share subscription agreement with Zhejiang Jinhua Jinyi Hi-tech Industrial Investment Group Co., Ltd., under which 59,964,021 new domestic shares were issued at a price of CNY 50.03 per share. The deal generated roughly CNY 3 billion in fresh capital, reinforcing Leapmotor’s balance sheet and funding capacity.
Leapmotor domestic share subscription with FAW Equity
Earlier, Leapmotor completed a second Leapmotor domestic share subscription by signing a domestic equity agreement with FAW Equity Investment (Tianjin) Co., Ltd. This transaction involved the issuance of 74,832,245 domestic shares, further expanding Leapmotor’s shareholder base and strategic backing from one of China’s most influential automotive investment entities.
Total capital raised and share issuance
Across both placements, Leapmotor issued a combined total of 134,796,266 new domestic shares, bringing total proceeds to approximately CNY 6.74 billion. The capital inflow reflects strong institutional confidence in Leapmotor’s technology roadmap and electric vehicle growth strategy.
The fundraising breakdown includes:
- CNY 3 billion from Jinyi Hi-tech
- CNY 3.74 billion from FAW Equity
Use of funds and strategic focus
Leapmotor confirmed that the majority of funds will be directed toward innovation and expansion initiatives. Around 70 percent, equivalent to CNY 4.72 billion, is earmarked for research and development, supporting areas such as vehicle platforms, battery systems, and software architecture. The remaining 30 percent, or CNY 2.02 billion, will be allocated to working capital and general corporate purposes, improving operational flexibility and liquidity.
Key focus areas for the investment include:
- New electric vehicle platform development
- Powertrain and battery technology advancement
- Software and intelligent driving architecture
- Manufacturing and operational scale-up
With these two large capital injections, Leapmotor is positioning itself for its next phase of growth in China’s highly competitive electric vehicle market, while reinforcing financial stability and accelerating product innovation through its Leapmotor domestic share subscription program.
Stock Exchange Filling
Click above to visit the official source.
Share: