Just now, FAW officially invested in Leapmotor, acquiring a 5% stake for 3.74 billion yuan.

Total fundraising is approximately 3.74 billion yuan! FAW Equity subscribes for nearly 75 million shares of Leapmotor.

According to Che Dongxi on December 29th, just now, Leapmotor announced in a Hong Kong Stock Exchange filing that it has entered into an agreement with FAW Equity to issue approximately 74.83 million domestic shares to FAW Equity at a subscription price of 50.03 yuan per domestic share subscription.

Leapmotor enters into a domestic share subscription agreement with FAW Equity

Leapmotor revealed that the domestic share subscription will raise a total of 3.744 billion yuan and further explained the use of the funds: approximately 50%, or 1.872 billion yuan, will be used for R & D investment; approximately 25%, or 936 million yuan, will be used to supplement working capital and for general corporate purposes; and approximately 25%, or 936 million yuan, will be used to expand the sales and service network and enhance brand awareness.

Use of proceeds from the domestic share subscription

Regarding FAW's investment, according to relevant reports, Zhu Jiangming responded for the first time, saying, Leapmotor will ensure the control of the actual controller, and this will not change. With the participation and support of the major shareholder, as well as the cooperation at the strategic and product levels, the company will be more stable.

Zhu Jiangming, founder, chairman, and CEO of Leapmotor

Li Tengfei, vice - president of Leapmotor Technology, said that whether it is the cooperation with Stellantis or FAW, the investment agreements clearly stipulate the equity ratio to ensure the controlling position of the company's actual controller team.

After the subscription is completed, FAW Equity will hold approximately 5% of Leapmotor's shares

On December 24, 2025, the closing price of Leapmotor's Hong Kong - listed shares was HK$49.94 (approximately RMB 45.02). As of press time, the Hong Kong - listed share price of Leapmotor was HK$51.90 (approximately RMB 46.79).

Recently, at the press conference marking the 10th anniversary of the establishment of the Leapmotor brand, Zhu Jiangming, founder, chairman, and CEO of Leapmotor, said that Leapmotor wants to shed the label of a new - energy vehicle startup. In the next decade, it will focus on moving upmarket and strive to achieve an annual sales volume of 4 million vehicles.

FAW's investment provides crucial strategic resources and credibility endorsement for Leapmotor's current and future development.

01. FAW and Leapmotor Officially Announce Deepened Cooperation and Sharing of Advantageous Resources

Today, both Leapmotor and FAW officially announced that FAW and Leapmotor held a signing ceremony in Hangzhou to strengthen strategic collaboration, share advantageous resources, and continuously deepen cooperation.

Leapmotor officially announces deepened cooperation with FAW

FAW Equity Investment (Tianjin) Co., Ltd. (hereinafter referred to as "FAW Equity"), a wholly - owned subsidiary of FAW, and FAW Qixin Power (Changchun) Technology Co., Ltd. (hereinafter referred to as "Qixin Power") signed an investment agreement and a cooperation agreement with Leapmotor respectively.

FAW Equity signs an investment agreement with Leapmotor

Yao Gaoyuan, Deputy Secretary of the Hangzhou Municipal Party Committee and Mayor, Liu Yigong, Deputy Secretary of the Party Committee and General Manager of FAW, and Zhu Jiangming, founder, chairman, and CEO of Leapmotor, attended the ceremony and witnessed the signing.

Qixin Power signs a cooperation agreement with Leapmotor

The two parties also pointed out in a statement that the cooperation is based on long - term strategic mutual trust and technological complementarity.

The two parties will take this cooperation as a new starting point, give full play to their respective advantages, further deepen cooperation in areas such as joint R & D of intelligent connected new - energy vehicles, collaborative production, and global layout, accelerate the creation of a new paradigm for cooperation in the automotive industry, jointly contribute to the high - quality development of the Chinese automotive industry, and promote China's transformation from a "big automotive country" to a "powerful automotive country".

02. The Overseas - Oriented Cooperative Model of FAW and Leapmotor Has Been Finalized and Will Go into Mass Production in the Second Half of Next Year

Against the backdrop of increasingly fierce competition in the electrification and intelligentization of the automotive industry, in order to strengthen technological integration, pool advantageous resources, jointly enhance product competitiveness, and respond to market competition and challenges through mutual empowerment, FAW and Leapmotor signed a "Memorandum of Understanding on Strategic Cooperation" on March 3, 2025.

To further strengthen strategic synergy, the two parties have expanded cooperation in areas such as capital and powertrain.

According to the agreement, FAW Equity will invest in Leapmotor by subscribing for additional domestic shares and become its strategic shareholder, promoting strategic synergy between the two automotive groups through capital integration; Qixin Power will further share resources with Leapmotor and jointly promote the joint development and production collaboration of plug - in hybrid and range - extended powertrains.

In late November this year, at Leapmotor's Q3 2025 earnings conference call, Li Tengfei, vice - president of Leapmotor Technology, officially announced the R & D progress of the cooperative model between FAW and Leapmotor.

Li Tengfei said, The first project of the overseas - oriented model between the two parties has been finalized and will go into mass production and be launched for overseas sales in the second half of next year. Other aspects of cooperation are also progressing in an orderly manner.

At the same time, Li Tengfei mentioned that Leapmotor and FAW will draw on each other's strengths based on their respective advantages and work together. Whether in the Chinese or overseas markets, Leapmotor still has much to learn from traditional automakers like FAW, and there is room for cooperation in many aspects such as quality and supply chain.

03. Conclusion: FAW's Investment Brings Greater Challenges and Opportunities

Overall, FAW's investment provides important strategic resources and a buffer for Leapmotor, which is at a critical stage of development, especially at a crucial juncture as it evolves from a new - energy vehicle startup to a more mature automaker.

However, this is not a guarantee of success.

Fierce competition in the existing market, ambitious sales targets, the inherent difficulty of brand upgrading, and the common integration costs in cross - enterprise cooperation are all real challenges.

This cooperation is more like a crucial strategic empowerment, providing Leapmotor with more "ammunition" for the upcoming difficult competition. However, whether it can ultimately succeed will still depend on its comprehensive competitiveness in terms of products, technology, operations, and brand.

This article is from the WeChat public account "Che Dongxi", author: Guo Yue, editor: Zhi Hao. Republished by 36Kr with permission.