Leapmotor raises $364 million through private placement of domestic shares
Seventy-five percent of the raised funds, or RMB 1.95 billion, will be allocated to developing new EV models and upgrading existing ones.
- Seventy-five percent of the raised funds, or RMB 1.95 billion, will be allocated to developing new EV models and upgrading existing ones.
- Leapmotor introduced four Chinese state-owned enterprise shareholders through this share offering.
Leapmotor (HKG: 9863) secured fresh capital through a private placement to four Chinese state-owned enterprises, providing ammunition for its further expansion.
The automaker has completed a private placement of domestic shares, raising a total of RMB 2.6 billion ($364 million), according to a Hong Kong Stock Exchange announcement today.
Seventy-five percent of the raised funds, or RMB 1.95 billion, will be used for the research and development of new electric vehicle (EV) models and upgrades to existing models.
The remaining 25 percent, or RMB 650 million, will supplement working capital and fund general corporate purposes.
Through this placement, Leapmotor introduced four state-owned enterprise shareholders: Wuyi County Financial Investment, Jinhua Industrial Fund, Huzhou Xinchuang, and Hangzhou Hehe.
Following the offering, Leapmotor's total issued shares increased to 1,421,812,652, comprising 131,047,140 H-shares and 290,765,512 domestic shares.
Leapmotor has witnessed robust vehicle sales growth over the past year, driving significant improvements in its financial performance.
It achieved net income of RMB 30 million in the first half of 2025, marking its first positive half-year net income, according to its financial report released last month.
This makes Leapmotor the second Chinese new energy vehicle (NEV) maker after Li Auto (NASDAQ: LI) to achieve half-year profitability.
As of June 30, the company held RMB 29.58 billion in cash, cash equivalents, restricted cash, and time deposits.
Leapmotor delivered 57,066 vehicles in August, marking its fourth consecutive month of record-high deliveries.
From January to August, Leapmotor delivered 328,859 vehicles, representing a 136.43 percent year-on-year increase, according to data compiled by CnEVPost.
($1 = RMB 7.1462)
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