Gasgoo Munich- On Sept. 16 that Leapmotor announced it has received official approval from the China Securities Regulatory Commission (CSRC) to issue shares to specific investors.Image source: Leapmotor announcementThe regulator greenlit the registration to issue domestic shares to FAW Equity and Jinyi Gaoxin, raising roughly 6.744 billion yuan. With this approval, the closely watched strategic financing deal is now officially sealed.The two subscribers are FAW Equity Investment (Tianjin) Co., Ltd. and Zhejiang Jinhua Jinyi Gaoxin Industrial Investment Group Co., Ltd., committing 3.744 billion yuan and 3 billion yuan, respectively.Proceeds will primarily fuel core technology R&D and shore up working capital. The capital ensures funding for Leapmotor's smart driving initiatives and vehicle platform iterations, while bolstering the company's cash flow resilience.The approval remains valid for 12 months from the issuance date. Leapmotor stated it will proceed with the necessary procedures within that timeframe, adhering to the approval, relevant laws, and shareholder authorizations, while maintaining continuous information disclosure.Onboarding FAW Equity and Jinyi Gaoxin provides Leapmotor with dual strategic backing from industrial capital and local state assets. FAW, a leading domestic automaker, signed a strategic cooperation memorandum with Leapmotor as early as 2025 to collaborate on vehicle and component development. Meanwhile, Jinyi Gaoxin's stake will deepen Leapmotor's industrial footprint in its home base of Jinhua.Against the backdrop of a persistent price war and intensifying competition in China's new energy vehicle sector, this funding will support Leapmotor's continued investment in core technologies like smart driving, helping to consolidate its product competitiveness.
