Chinese electric vehicle maker Leapmotor has raised RMB 2.6 billion ($364 million) through a private placement of domestic shares, bringing in four state-owned enterprises as new shareholders, according to a filing with the Hong Kong Stock Exchange on Tuesday.
The company said 75% of the proceeds, or RMB 1.95 billion, will be allocated to research and development of new electric vehicle models and upgrades to existing ones.
The remaining RMB 650 million will go toward working capital and general corporate purposes. The new state-owned backers include Wuyi County Financial Investment, Jinhua Industrial Fund, Huzhou Xinchuang, and Hangzhou Hehe.
Following the offering, Leapmotor’s total issued shares rose to 1.42 billion, including 131.0 million H-shares and 290.8 million domestic shares. The fundraising comes as Leapmotor continues to expand, supported by rising sales.
The company posted its first half-year net profit of RMB 30 million in the first six months of 2025, making it the second Chinese new energy vehicle maker after Li Auto (NASDAQ: LI) to achieve profitability on a half-year basis.
Leapmotor reported holding RMB 29.58 billion in cash, cash equivalents, restricted cash, and time deposits as of June 30, underscoring its improved liquidity position.
