Li Auto funds chip subsidiary MHX Technology with RMB1.625 billion equity round
Li Auto announced that its chip and domain‑controller subsidiary, Shanghai Mahe Xin Technology (MHX Technology), closed an equity financing of RMB1.625 billion. Li Auto will contribute RMB1.0 billion and external investors will provide RMB625 million, with Hangzhou Jingtao granted a one‑time subscription right for up to an additional RMB500 million before year‑end. The round values the subsidiary at a post‑money RMB17.1 billion and leaves Li Auto with roughly 74% ownership while it retains control and consolidation of the unit’s results.
Why it matters
The financing gives MHX Technology capital to accelerate R&D and commercialization of its automotive and non‑automotive chips, while Li Auto’s ownership remains above the 50% threshold, limiting dilution of its control. The additional subscription right could increase total funding to RMB2.125 billion if exercised, further supporting the unit’s growth plans.
Key facts
- 1The equity financing totals RMB1.625 billion. stocktitan.net
- 2Li Auto will invest RMB1.0 billion through a wholly‑owned subsidiary. stocktitan.net
- 3External investors will contribute RMB625 million. stocktitan.net
- 4Hangzhou Jingtao has a subscription right to invest up to RMB500 million on a one‑off basis before 31 Dec 2026. stocktitan.net
- 5If the subscription right is fully exercised, the post‑money valuation is RMB17.1 billion. cnevpost.com
- 6Assuming full utilization of the incentive plans and the subscription right, Li Auto, external investors and incentive‑plan entities are expected to hold 74.01%, 6.58% and 19.41% of MHX Technology, respectively. cnevpost.com
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.