Li Auto has announced its intention to invest RMB 2.65 billion to augment its capital and shareholding in Sunwoda Electric. Following this capital injection, Li Auto will directly possess an 8.79% equity stake in Sunwoda Electric. When factoring in its previously indirectly held shares, Li Auto's total ownership will climb to 11.17%. Consequently, the parent company of Sunwoda will witness a dilution in its stake, bringing it down to 24.06%. Nevertheless, Sunwoda Electric will remain a consolidated entity within the listed company's financial statements. The two entities have a history of collaboration, having previously co-founded a joint venture. Moreover, Sunwoda has supplied battery solutions for several Li Auto vehicle models. This latest capital infusion is poised to elevate their partnership to a new level, fostering a long-term community of shared interests. Li Auto employs a multifaceted approach that integrates in-house research, joint venture manufacturing, and strategic equity investments, with a particular emphasis on battery technology R&D. By harnessing Sunwoda's manufacturing prowess, Li Auto secures its leading position in battery design and capacity provision, while simultaneously mitigating the cost burdens associated with heavy asset investments.