LEAPMOTOR(HK:09863) Guo Ji Jin Rong Bao·2025-08-20 15:41Core Viewpoint - China FAW Group is planning to acquire approximately 10% of Leap Motor's shares, becoming a strategic shareholder, which reflects the deepening cooperation between the two companies [2] Group 1: Strategic Cooperation - The strategic cooperation between China FAW and Leap Motor was formalized in a memorandum signed on March 3, focusing on joint development of new energy vehicles and component collaboration [2] - The acquisition of a 10% stake allows China FAW to gain significant influence while minimizing investment risks [2] - Leap Motor is expected to benefit from China FAW's financial support and distribution network, enhancing its bargaining power in component procurement [2] Group 2: Financial Performance - Leap Motor reported a revenue of 24.25 billion yuan and a net profit of 30 million yuan for the first half of the year, marking a turnaround to profitability [3] - The company had a free cash flow of 860 million yuan as of June 30, 2025, indicating a strengthened financial position that could be further bolstered by the investment from China FAW [3] - Leap Motor's non-automotive sales contributed nearly 1.1 billion yuan to its revenue, with significant portions coming from government subsidies and research income from China FAW [3]