Leapmotor, a leading electric vehicle (EV) manufacturer, recently announced that it has successfully raised RMB 2.6 billion ($364 million) through a private placement of domestic shares. This capital injection will provide the company with the necessary funds to develop new EV models and enhance existing ones.
Out of the total funds raised, 75% amounting to RMB 1.95 billion will be allocated towards research and development activities, focusing on innovation in the EV sector. The remaining 25%, equivalent to RMB 650 million, will be utilized for working capital requirements and general corporate purposes.
The private placement also saw the entry of four Chinese state-owned enterprises as shareholders in Leapmotor. These entities include Wuyi County Financial Investment, Jinhua Industrial Fund, Huzhou Xinchuang, and Hangzhou Hehe, signaling a strategic partnership for the company’s future growth.
Leapmotor’s financial performance has been impressive, with the company reporting a net income of RMB 30 million in the first half of 2025, marking its first positive half-year net income. This achievement places Leapmotor as the second Chinese new energy vehicle (NEV) manufacturer, after Li Auto, to achieve profitability on a half-year basis.
The company’s robust sales growth is evident from its delivery numbers, with Leapmotor recording 57,066 vehicle deliveries in August alone, marking its fourth consecutive month of record-high deliveries. From January to August, Leapmotor delivered a total of 328,859 vehicles, reflecting a significant year-on-year increase of 136.43%.
With a strong cash position of RMB 29.58 billion in cash, cash equivalents, restricted cash, and time deposits as of June 30, Leapmotor is well-positioned to drive further expansion and innovation in the EV market.
Looking ahead, Leapmotor has raised its 2025 sales target to between 580,000 and 650,000 units, underscoring its commitment to growth and sustainability in the rapidly evolving EV industry.
Overall, Leapmotor’s successful private placement and strategic partnerships with state-owned enterprises highlight the company’s solid financial standing and growth trajectory in the competitive EV market.
