On December 28th and 29th, Leapmotor made two consecutive announcements, revealing significant strides in strategic financing and the completion of two related transactions. The company has entered into a domestic share subscription agreement worth RMB 3.744 billion with FAW Equity Investment (Tianjin) Co., Ltd., a wholly-owned subsidiary of China FAW Group. Additionally, Leapmotor has renewed a framework agreement for component procurement and signed a brand internationalization service agreement, marking a comprehensive enhancement in its technological R&D capabilities, supply chain security, and overseas market expansion strategy.

Under the terms of the agreement, Leapmotor will issue 74.8322 million domestic shares to FAW Equity at a subscription price of RMB 50.03 per share. The total raised funds of RMB 3.744 billion will be allocated as follows: approximately 50% will be earmarked for R&D investments, 25% will be used to supplement working capital and for general corporate purposes, and the remaining 25% will be invested in expanding sales and service networks and boosting brand recognition. Moreover, Leapmotor has renewed its 2026 framework agreement for component procurement with VarioTech, with an estimated maximum procurement amount of RMB 1.1 billion. Additionally, the company has entered into a brand development and market insight service agreement, for which it will pay a service fee of EUR 42 million to expedite its brand internationalization efforts.