After completion, the newly issued domestic shares will account for 20.47% of Leapmotor’s expanded domestic share capital and 5% of its total enlarged issued share capital.
On Dec. 28, China FAW Group and Leapmotor held a signing ceremony in Hangzhou, where FAW’s subsidiaries, FAW Equity and Qixin Power, signed an investment agreement and a cooperation agreement with Leapmotor.
According to a filing with the Hong Kong Exchange, Leapmotor plans to issue 74.832 million domestic shares to FAW Equity at RMB 50.03 ($7.00) per share, raising total proceeds of about RMB 3.74 billion ($533 million).
After completion, the newly issued domestic shares will account for 20.47% of Leapmotor’s expanded domestic share capital and 5% of its total enlarged issued share capital.
Roughly 50% of the proceeds will be allocated to research and development, about 25% to working capital and general corporate purposes, and the remaining 25% to expanding the sales and service network and enhancing brand awareness.
In late November, Leapmotor CEO Zhu Jiangming publicly dismissed market speculation about a potential takeover by FAW, stressing that founder control was a red line. The private placement structure largely reflects that stance.
Meanwhile, Qixin Power will further share resources with Leapmotor, and jointly promote the co-development and production coordination of PHEVs and EREVs.
At Leapmotor’s recent 10th anniversary event, Zhu reviewed the company’s decade-long growth and outlined its strategy for the next ten years.
The D-series product line was unveiled, with the D19 SUV showing its interior for the first time and the D99 MPV making its global debut, targeting the RMB 300,000 ($42,000) price segment.
Over the past decade, Leapmotor has achieved growth in both scale and profitability. Cumulative deliveries have exceeded 1.2 million units, while full-year 2025 sales are expected to approach 600,000 units.
The company reached its 500,000-unit sales target for 2025 ahead of schedule in November and has led China’s new EV brand sales rankings for nine consecutive months.
In terms of profitability, Leapmotor remained profitable in the first half and third quarter of 2025 and expects to stay profitable for the full year.
Internationally, supported by its partnership with Stellantis, Leapmotor has entered 35 countries and regions, with cumulative exports exceeding 60,000 vehicles across Europe, Asia-Pacific, South America, the Middle East and Africa.
Leapmotor now operates more than 1,800 sales and service outlets worldwide, including over 800 overseas locations, with more than 750 in Europe, over 60 in Asia-Pacific and more than 40 in South America.
Zhu said Leapmotor’s long-term ambition is to become a global automaker with annual sales of 4 million vehicles, designating 2026 as its “one-million-unit breakthrough year” as it targets annual sales of 1 million units.
Following the announcement, Leapmotor shares jumped at the open. As of press time, the stock was trading at HK$51.95 per share, up 4.02%.
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