On December 29, Leapmotor (零跑汽车) announced in a filing to the Hong Kong Stock Exchange that it has entered into a domestic share subscription agreement with FAW Equity (一汽股权). Under the agreement, Leapmotor will issue approximately 74.83 million domestic shares to FAW Equity at a subscription price of RMB 50.03 per share.
Leapmotor said the domestic share subscription is expected to raise gross proceeds of RMB 3.744 billion. Of the proceeds, approximately 50%, or RMB 1.872 billion, will be used for research and development; about 25%, or RMB 936 million, will be allocated to working capital and general corporate purposes; and the remaining 25%, or RMB 936 million, will be used to expand the company’s sales and service network and enhance brand awareness.
Regarding FAW’s investment, reports cited Leapmotor founder Zhu Jiangming as saying that maintaining the controlling shareholder’s control is non-negotiable. He said that with the entry and support of a major shareholder, as well as cooperation at both strategic and product levels, the company’s stability will be further strengthened.
Li Tengfei, Vice President of Leapmotor Technology, said that both the cooperation with Stellantis and the partnership with FAW include clear provisions in their investment agreements regarding shareholding ratios to ensure the controlling position of the company’s core management team.
Leapmotor’s Hong Kong-listed shares closed at HKD 49.94 (approximately RMB 45.02) on December 24, 2025. As of the time of reporting, the company’s share price stood at HKD 51.90 (approximately RMB 46.79).
At a recent event marking the tenth anniversary of the Leapmotor brand, Zhu Jiangming, founder, chairman and CEO of Leapmotor, said the company aims to move beyond the label of a “new carmaker” over the next decade, with a strategic focus on brand upgrading and a target of annual sales reaching 4 million vehicles.
FAW’s investment is seen as providing Leapmotor with key strategic resources and an endorsement of trust for its current and future development.