LEAPMOTOR(HK:09863) Mei Ri Jing Ji Xin Wen·2025-11-05 03:40Core Insights - China FAW Group plans to acquire a stake in Leap Motor through a targeted issuance, aiming to become its largest shareholder, with the proposal already approved by relevant authorities [1] - Leap Motor has denied the acquisition news, stating it is "untrue," while China FAW has not commented on the matter [1] Group 1: Strategic Developments - In March, China FAW and Leap Motor signed a strategic cooperation memorandum to leverage each other's technological strengths in R&D and collaborate on new energy vehicle development [1] - The memorandum also mentioned exploring the feasibility of deepening capital cooperation to achieve resource synergy across the entire industry chain [1] Group 2: Financial Performance - Leap Motor's largest shareholder is currently Stellantis Group, holding a 21.26% stake [2] - In October, Leap Motor achieved sales of 70,000 units, becoming the top seller among new car manufacturers [2] - For the first half of 2025, Leap Motor reported revenue of 24.25 billion yuan, a 174% year-on-year increase, and a net profit of 30 million yuan, marking its first half-year profit after a loss of 2.21 billion yuan in the previous year [2] - Leap Motor has raised its annual sales guidance from 500,000-600,000 units to 580,000-650,000 units based on its strong performance in the first half [2] Group 3: Market Context - China FAW is undergoing a transformation towards new energy vehicles, with a need to increase sales volume urgently [2] - In October, China FAW sold 305,000 vehicles, a year-on-year increase of 8.1%, with 38,900 units being new energy vehicles [2] - Collaborating with new car manufacturers like Leap Motor allows China FAW to continuously update and enhance its offerings, potentially leading to the development of flagship products [2]