LEAPMOTOR(HK:09863) Sou Hu Cai Jing·2025-12-29 07:26Core Viewpoint - The investment agreement between FAW Group and Leap Motor aims to enhance the company's stability and risk resilience while maintaining control by the founding team [1][3]. Group 1: Investment Details - FAW Group will invest in Leap Motor through a private placement of shares, becoming a strategic shareholder [3][6]. - Leap Motor will issue 74.832 million shares at a price of RMB 50.03 per share, totaling RMB 3.744 billion [3][6]. - The newly issued shares will represent 20.47% of the expanded total of domestic shares and 5% of the total expanded shares [3]. Group 2: Fund Allocation - Approximately 50% of the funds raised, or RMB 1.872 billion, will be allocated for research and development [6]. - About 25% of the funds, or RMB 936 million, will be used to supplement working capital and general corporate purposes [6]. - The remaining 25%, also RMB 936 million, will be directed towards expanding the sales and service network and enhancing brand awareness [6]. Group 3: Market Reaction - Following the announcement of the investment, Leap Motor's stock price increased by 5.13%, reaching HKD 52.5 per share [5].