LEAPMOTOR(HK:09863) Xin Lang Cai Jing·2025-12-29 05:40Core Viewpoint - The news highlights the strategic investment by China FAW Group (一汽) in Leap Motor (零跑汽车), which involves the subscription of 74.8322 million domestic shares at a premium price, aimed at enhancing collaboration in the smart electric vehicle sector [1][5]. Group 1: Investment Details - Leap Motor announced a conditional agreement with FAW to issue 74.8322 million domestic shares at a price of 50.03 CNY per share, which is a premium compared to the closing price of 49.94 HKD on December 24 [1]. - The subscription represents approximately 25.74% of the total issued domestic shares and about 5.26% of the total issued shares of Leap Motor [1][2]. - Following the completion of this subscription, the shareholding of the founding group will decrease from 9.04% to 8.59% [1]. Group 2: Financial Implications - The total proceeds from the domestic share subscription are expected to amount to 3.744 billion CNY, with approximately 50% allocated for R&D, 25% for operational funding, and 25% for expanding sales and service networks [2][3]. Group 3: Company Performance - Leap Motor, established in 2015, has become the second profitable new energy vehicle manufacturer, reporting a revenue of 19.45 billion CNY in Q3 2023, a year-on-year increase of 97.3%, and a net profit of 150 million CNY [3][4]. - The company has delivered over 1.2 million vehicles to date and aims to achieve annual sales of 600,000 units by 2025, with a long-term goal of reaching 4 million units [4]. Group 4: Strategic Collaboration - The investment by FAW is part of its strategy to accelerate its transition to smart electric vehicles, leveraging Leap Motor's expertise in self-research technology and cost control in new energy vehicles [4][5]. - The collaboration will focus on joint development and production of powertrains, including plug-in hybrids and extended-range vehicles, enhancing resource sharing between the two companies [5].